Nigeria’s crude oil production would drop to 43,775 barrels per day, following the decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut Nigeria’s production to 800,000 barrels at its meeting in Vienna, last Friday.
Nigeria has consistently been producing below the 2.3 million barrels daily benchmark in the approved budgets, since 2016. The latest cut will further reduce the output level by 43,775 barrels, in line with Friday’s resolution. OPEC’s secretariat production data of member countries contained in the latest monthly oil market report published on Friday showed Nigeria’s daily oil production has maintained a low profile for years.
After Niger Delta militants attacked oil facilities in 2015, cutting the country’s oil production by almost 50 per cent, the capacity has crawled slowly from an average of 1.6 million barrels in 2016 to about 1.7 million barrels in 2017 and 2018. In September, OPEC’s secretariat secondary sources put Nigeria’s daily production capacity at about 1.768 million barrels, before dropping by about 17,000 barrels to 1.751 million barrels in October.
But, direct communication sources, according to the group’s monthly report, gave the figure as 1.634 million barrels in September, up by about 138,000 barrels to about 1.772 million barrels in October. Based on Friday’s resolution, which said OPEC’s latest output cut by 2.5 per cent would be based on October production levels, Nigeria’s production is expected to drop by a minimum of 43,775 barrels to about 1.71 million barrels per day, effective January 2019.
Source: The Nation