Nigeria on today, Sunday, 12th April, 2020 joined its other OPEC+ counterparts to bring into effect the agreement to cut 9.7 million barrels of supply following the alignment of Mexico.
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.
Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Marlin Sylva disclosed this via a statement on the outcome of the 10th OPEC/Non-OPEC declaration of Cooperation Ministerial meeting held in Mexico, to conclude the curtailment of Crude Oil Production by 9.7 million barrels, made available to Citywide Multimedia.
According to him, the resolution 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.
As agreed, Nigeria will join OPEC+ to cut supply by 9.7 Million Barrels per day between May and June 2020, 8 million barrels per day between July and December 2020 and 6 million barrels per day from January 2021 to April 2022, respectively.
Based on reference production of Nigeria of October 2018 of 1.829 Million Barrels per day of dry crude oil, Nigeria will now be producing 1.412 Million Barrels per day, 1.495 million barrels per day and 1.579 million barrels 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.