Presently, the Organisation of Petroleum Exporting Countries (OPEC) has extended the production quota of 1.5 million barrels of crude per day (bpd) for Nigeria to 2025.
This was announced by the intergovernmental organisation at its 37th OPEC and non-OPEC ministerial meeting, held on Sunday.
As part of the resolutions at its last ministerial meeting on November 30, 2023, the oil cartel increased Nigeria’s production level to 1.5 million bpd for 2024.
However, on Sunday, OPEC said Nigeria’s production level of 1.5 million bpd should be maintained from January 1, 2025 to December 31, 2025.
Consequently, the oil alliance extended the level of overall crude oil production for OPEC and non-OPEC participating countries in the declaration of cooperation (DOC) “starting known 1 January 2025 until 31 December 2025”.
The group put the total monthly oil production quota (for all member countries) at 39.72 million bpd — comprising 24.13 million for OPEC countries and 15.59 million for non-OPEC countries.
OPEC also extended the assessment period “by the three independent sources to the end of November 2025, to be used as guidance for 2026 reference production levels.”
According to the international body, some member countries of OPEC and its allies, also known as OPEC+, held a meeting in-person in Riyadh, Saudi Arabia, on the sideline of the its annual meeting.
The countries include Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
The OPEC+ members had announced voluntary cuts amounting to 1.65 million bpd in April 2023.
In November 2023, the member countries also announced additional voluntary cuts of 2.2 million bpd, aimed at supporting the stability and balance of oil markets.
The OPEC said the aforementioned countries decided — in addition to decisions at its latest meeting — to extend the additional voluntary cuts of 1.65 million bpd that was announced in April 2023, until December 31, 2025.
“Moreover, these countries will extend their additional voluntary cuts of 2.2 million barrels per day, that were announced in November 2023, until the end of September 2024…,” the international body said.
OPEC, however, said the countries will gradually phase out the 2.2 million barrels per day cut on a monthly basis until the end of September 2025 to support market stability.
“This monthly increase can be paused or reversed subject to market conditions,” the group said.
“In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the Republic of Iraq, the Russian Federation and the Republic of Kazakhstan to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of June 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).”
The global oil charter scheduled its next meeting, to December 1.
(The Cable)