13th April, 2020
Nigeria is set to peg its daily oil output at 1.412 Million barrels per day from the average 1.87mbd.
The production cut will take effect from May-June 2019.
Petroleum Minister, Timipre Marlin Sylva said Nigeria is taking the shaving as a result of the 9.7m barrels output cut reached by OPEC+ on Sunday.
The global cut which is graduated till 2022, will see oil producers reduce output by 8 million barrels between July and December 2020.
From January 2021 till April 2022, output will be reduced by six million barrels.
Nigeria is set to peg crude production in like manner.
After the 1.412m output level in May-June, Nigeria will also peg output at 1.495 Million Barrels per day in July-September.
Then from January 2021 till April 2022, output will go up to 1.579 Million Barrels per day.
“This is in addition to condensate production of between 360-460 KBOPD of which are exempt from OPEC curtailment’, Sylva said.
Nigeria joined its other OPEC+ counterparts on Easter Sunday to reach the production pegging decisions.
“The intervention of the United States of America resulted in Mexico agreeing to a cut of 100 KBOPD and to be complemented by an additional 300 KBOPD by US Producers”, Sylva disclosed.
“This will enable the rebalancing of the oil markets and the expected rebound of prices by $15 per barrel in the short term.
“This also promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel”, Sylva added.