Nigeria restates its commitment to OPEC+ oil output cut resolutions

The Federal government has restated its commitment to the April 2020 Oil Production cut agreement by OPEC+ Members.

Timipre Sylva,the Minister of State for Petroleum Resources who stated Federal government’s position said Oil producing countries under the aegis of OPEC+ had in April 2020 resolved to reduce daily output by a cut of 9.7 mb/d.

The move, he explained was aimed at halting a further drop in the global price of crude oil as a result of the Corona Virus pandemic.

According to NNPC data, Nigeria in the month of May reduced its production to 1.613 mbd as against the1.829 mb/d originally earmarked representing a compliance rate of about 52%.

The Ministry of Petroleum noted in a statement that the percentage of compliance is however opposed to the 19% reported by Thompson Reuters (TR),adding,”It is instructive to note that the Agbami and Akpo figures reported by Thompson Reuters are classified as condensates, and as such, are excluded for quota determination.”

It stated emphatically that Nigeria’s current daily production is below the commitment level of 1.412 mb/d which consequently will translate to full compliance by the end of June, 2020.

Source: BusinessDay

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