…Nigeria’s quota down 100,000b/d
11 December 2018, Sweetcrude, Lagos — The joint ministerial meeting of the OPEC and Non-OPEC that held last Friday concluded that countries party to the Declaration of Cooperation, DoC, will cut production from October level starting from January 2019.
Following deliberations on the immediate oil market prospects and in view of growing imbalance between global oil supply and demand, the group will adjust the overall production by 1.2 million barrels per day, mb/d, effective from January 2019.
The adjustment will be for an initial period of six months, with a review in April 2019
The contributions from OPEC and the voluntary contributions from non-OPEC participating countries will correspond to 0.8 mb/d (2.5%), and 0.4 mb/d (2.0%), respectively.
The conference decided to adjust OPEC overall production by 0.8 mb/d from October 2018 levels, effective as of January 2019, for an initial period of six months, with a review in April 2019.
This means that OPEC’s fourteen-member countries will cut a total of 800,000b/d, while non-OPEC countries – Russia, the United States, China, Mexico, Canada, Norway and Brazil – will cut a total of 400,000b/d.
OPEC’s Monthly Oil Market Report, MOMR for October seen by SweetcrudeReports, puts Nigeria’s production at 1.717 million barrels per day, minus condensates, according to direct sources, while secondary sources put the country’s October output at 1.748mb/d. This means that Nigeria’s production which was put at 1.800mb/d since the DoC will now drop to around 1.7mb/d.
The country which was exempted from the cuts three times between January 2017 and July 2018, used to produce between 2.2mb/d and 2.4mb/d before unrest in the Niger Delta reduced it below 1.8mb/d.
With Nigeria’s production at around 1.7mb/d, this means lower income for a country which gets 90 percent of its revenue from crude oil exports.
Among other OPEC member countries, Algeria’s October production was 1.072b/d, Angola 1.489b/d, while Congo did not produce a single barrel since June.
Ecuador will henceforth see its production at 519 thousand barrels per day, tb/d, and Equatorial Guinea at 123tb/d.
Gabon did not also produce anything in October however, its September figure was 188tb/d.
Iran which is currently facing a threat to its exports due to U.S’ nuclear deal sanctions against the country, produced a total of 3.755mb/d in October, while Iraq produced 4.460mb/d.
Kuwait’s October figure was 2.752mb/d.
t OPEC and non-OPEC Ministerial Meeting will convene in Vienna, Austria, in April 2019