Following the agreement reached by members and allies of the Organization of Petroleum Exporting Countries to increase output, Nigeria will speed up crude oil production.
Nigeria has been a long-standing member of OPEC, collaborating with the organization for over 50 years.
On Sunday, OPEC and its allies agreed to increase crude oil production by 400,000 barrels per day.
It gave this hint in the Declaration of Cooperation resolutions adopted at the 19th OPEC and Non-OPEC Ministerial Meeting, which was held virtually.
The organization stated that participating countries agreed to adjust upward their overall production by 0.4mb/d (million barrels per day) every month beginning August 2021 until phasing out the 5.8mbd production adjustment.
Garba-Deen Muhammad, Special Assistant on Media to the Minister of State for Petroleum Resources, told our correspondent on Tuesday that Nigeria would increase production as a result of the decision.
He said, “The increase is usually across the board. Whenever there is a production cut, it is across the board and now that we have an increase, it is also going to be across the board”.
It is divided by the OPEC quota but I don’t have the numbers now.
When asked if the country would increase production soon, Mohammed said, “Yes.” I’ll get the figures.
In addition, Kennie Obateru, Group General Manager of the Nigerian National Petroleum Corporation’s Group Public Affairs Division, confirmed that OPEC would use its parameters to determine the oil production of its members based on the 400,000 barrel increase.
“The (petroleum) minister will be able to speak on that in details but what I know is that they (OPEC) have parameters for arriving at who gets what; so I think they may use the same parameters,” he stated.
A report by PUNCH on Friday reveals that Nigeria’s crude oil production fell by 240,000 barrels in June 2021 as the commodity’s price continued its monthly rise in the month under review.
In OPEC’s July 2021 Oil Market Report, crude oil production in Nigeria fell by 8,000 barrels per day in June. Crude oil production figures based on secondary sources, Nigeria produced 1.407 million barrels of oil per day in May this year, but this fell to 1.399 million barrels per day in June.
According to OPEC data, by shedding 8,000 barrels of crude daily, the country recorded a drop of 240,000 barrels in June 2021.
However, based on the group’s most recent agreement to increase output, government officials stated that the country’s output would be increased, as this could lead to an increase in revenue for Nigeria.