Page 15 - AfrOil Week 33

AfrOil PERFORMANCE AfrOil

OPEC report indicates Nigeria is making

progress towards quota compliance

NIGERIA NIGERIA may be Africa’s largest crude oil pro- produced 1.49mn bpd last month.
ducer, but it has been working to reduce output OPEC does not explain the discrepancy
levels in line with the OPEC+ agreement signed between the two figures. The difference may be
earlier in 2020. According to the latest version of rooted in questions about whether to treat cer-
OPEC’s monthly report, the West African state tain types of liquid hydrocarbons as crude oil or
brought output down to 1.37mn barrels per day gas condensate.
(bpd) in July. Nigerian authorities have argued that light
This figure indicates that the country is sweet liquids from certain large offshore fields
moving towards compliance with the OPEC+ should be classified as condensate, which is not
production regime. Nigeria was supposed to subject to the OPEC+ quotas, and OPEC has
reduce yields to 1.37mn bpd in May and June of agreed to do so for production streams from the
this year, but it exceeded its quotas, as did several Akpo and Egina fields. However, the condensate
other signatories to the accord. In response, the extracted from these two sites is very similar in
OPEC+ group’s Joint Ministerial Monitoring quality to the liquids that are being extracted
Committee (JMMC) instructed the overpro- from the Agbami field. Chevron, the operator of
ducers to compensate for these lapses by making Agbami, and its partners all classify production
further cuts between July and September. from the field as crude oil. ™
The Nigerian government has said repeat-
edly that it is committed to the OPEC+ agree-
ment and will strive for 100% compliance. But
in light of the country’s long track record of quo-
ta-busting, its pledges have been received with
some scepticism.
This doubt is evident in OPEC’s monthly
report, which notes that the July production
figure of 1.37mn bpd is based on official data.
It also states that numbers from secondary
sources indicate that Nigeria may actually have Nigeria produced 1.37mn bpd in July (Photo: DPR)

POLICY
Head of Nigerian independent says PIB

does not take account of industry interests

NIGERIA THE head of Nigeria’s Dupri Oil has asserted sent a copy of the draft bill,” he said at a webi-
that the latest version of the Petroleum Industry nar organised by Business Day and the Nigeria
Bill (PIB), which was submitted to legislators on Natural Resource Charter (NNRC), a non-profit
August 18, does not take sufficient account of oil organisation working in the extractive sector.
and gas operators’ interests. If the PIB does not take oil and gas firms’
Imo Itsueli, the chairman of the Nigerian interests into consideration, Itsueli said, Abuja
independent, noted last week that the gov- may have a hard time securing its passage. The
ernment had drawn up a new version of the legislative process makes provisions for public
long-delayed PIB in the hope of securing legisla- hearings on the bill, and operators may learn
tive approval for it before the end of this year. But during these hearings that officials in Abuja are
he complained that Abuja had made changes to pursuing goals that are unrealistic in light of the
the previous draft without seeking any input way the industry functions, he commented. If
from companies involved in the industry. so, they will surely raise state their concerns, and
“The Oil Producers Trade Section (OPTS) the resulting discussions could slow or derail a
and independents have not been consulted or vote, he said.

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