OPEC raises Nigerian production quota to 1,772 mbpd for June

The Organization of the Petroleum Exporting Countries (OPEC) raised Nigeria‘s oil production quota from the 1.735 million barrels per day (mbpd) target approved in May 2022 to a new target of 1.772 mbpd for June 2022.

A statement released on Thursday said OPEC made the decision at its 28th OPEC Ministerial Meeting and outside OPEC despite Nigeria missing its approved April 2022 target by 40,000 bpd.

The new target is 19,000 bpd higher than the approved quota for May 2022.

OPEC also adjusted total monthly production upwards by 432,000 bpd for the month of June 2022 with a target production of 42,558 mbpd.

“Following the conclusion of the 28th OPEC and Non-OPEC Ministerial Meeting, held via videoconference on May 5, it was noted that the fundamentals of the oil market continued and the consensus on the outlook pointed to a balanced market.

“Furthermore, he noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic,” the statement said.

He said the meeting reaffirmed the decision of the 10th OPEC and Non-OPEC Ministerial Meeting on April 12, 2020, and endorsed it at subsequent meetings, including the 19th OPEC and Non-OPEC Ministerial Meeting on July 18, 2021.

The statement said the meeting also reconfirmed the production adjustment plan and the decision to adjust total monthly production upwards by 432,000bpd for the month of June 2022.

He said the meeting reiterated the critical importance of adhering to the full compliance and compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022.

According to the statement, the compensation plans must be presented in accordance with the declaration of the 15th OPEC and non-OPEC Ministerial Meeting, while the next meeting will be held on June 2, 2022.

The Nigerian News Agency reports that a Reuters poll showed Nigeria’s production recorded a decline of 40,000 bpd in April 2022.

The survey said that “force majeure” is still in force in Bonny Light’s export flow.

He noted that despite Nigeria’s output decline, OPEC pumped 28.58 bpd in April, 40,000 bpd higher than the previous month and short of the 254,000 bpd increase envisaged in the supply deal. (NAN)