Nigeria has joined other OPEC+ counterparts in a historic curtailment of crude oil production to rebalance and stabilise the global oil markets
Nigeria is participating in the pursuit of our commitment to the framework of the Declaration of Cooperation entered on 10 December 2016 and further endorsed in subsequent meetings as well as the Charter of Cooperation signed in July 2019.
Nigeria joined OPEC+ to cut supply by up to 10 mmbbl per day between May and June 2020, eight million barrels per day between July and December 2020 and six million barrels per day from January 2021 to April 2022, respectively.
Based on reference production of Nigeria of October 2018 of 1.829 mmbbl per day of dry crude oil, Nigeria will now be producing 1.412 mmbbl per day, 1.495 mmbbl per day and 1.579 mmbbl per day respectively for the corresponding periods in the agreement. This is in addition to condensate production of between 360-460 KBOPD of which are exempt from OPEC curtailment.
It is expected that this historic intervention when concluded will see crude oil prices rebound by at least US$15 per barrel in the short term, thereby enhancing the prospect of exceeding Nigeria’s adjusted budget estimate that is currently rebased at US$30 per barrel and crude oil production of 1.7 mmbbl per day. The price rebound may translate to additional revenues of not less than US$2.8bn for the Federation.
