Page 10 - AfrOil Week 41 2021

AfrOil PERFORMANCE AfrOil

OPEC+ output up but still short

GLOBAL MARKETS OIL production among members of the OPEC+ OPEC had “reiterated the critical importance
group increased by 470,000 barrels per day dur- of adhering to full conformity and to the com-
ing September, according to a survey by S&P pensation mechanism taking advantage of the
Global Platts, but output remains more than extension of the compensation period until the
500,000 bpd below combined quotas. end of December 2021.”
The survey showed that production among This marks the latest effort to bring in line
OPEC members was 27.29mn bpd, 320,000 bpd producers that have failed to comply with out-
higher than in August with the nine non-OPEC put quotas.
countries having produced 13.44mn bpd, up Russia, Iraq, the UAE, Bahrain, Gabon and
150,000 bpd from a month earlier. This leaves South Sudan have all exceeded their quotas to
combined OPEC+ production 570,000 bpd varying extents in recent months, with the two
under quota. Middle Eastern nations having been regularly
The largest increases came from Kazakh- guilty of overproduction in recent years.
stan (110,000 bpd), Russia (90,000 bpd), Saudi The statement noted that “compensation
Arabia (also 90,000 bpd) and Iraq (80,000 bpd); plans should be submitted in accordance with
however, most OPEC+ members have struggled the statement of the 15th OPEC and non-OPEC
to increase output following prolonged periods Ministerial Meeting”.
of underinvestment, with output well below lev- The next meeting is scheduled to take place
els anticipated. on November 4. ™
The largest OPEC underperformer was Nige-
ria, which fell 224,000 bpd short of its quota with
pipeline damage having an impact on exports,
while Malaysia was the largest non-OPEC mem-
ber underperformer, with output reportedly
down owing to difficulties at an offshore facility.
The update follows the announcement last
week that the group would stick with its planned
addition of 400,000 bpd of oil to November. In a
press release to accompany the announcement,
OPEC said that the group “reaffirmed the deci-
sion of the 10th OPEC and non-OPEC Min-
isterial Meeting on 12 April 2020 and further
endorsed in subsequent meetings including the
19th OPEC and non-OPEC Ministerial Meeting
on the 18 July 2021.” Members of the OPEC+ group’s Joint Ministerial
It added that during the October 4 meeting, Moritoring Committee (JMMC), shown in 2018 (Photo: OPEC)

POLICY
Buhari hails establishment of new NOC

NIGERIA NIGERIA’S President Muhammadu Buhari says was signed earlier this year. That legislation
the country “expects nothing less” than that the called for NNPC to be incorporated as a limited
newly incorporated Nigerian National Petro- liability company without direct access to gov-
leum Co. Ltd (NNPC Ltd), with a capitalisation ernment funding.
of NGN200bn ($487mn) will become a globally Buhari described the establishment of the
competitive firm. He was speaking after receiv- new entity as “a significant milestone in our
ing a certificate of incorporation for NNPC Ltd, quest to create an enduring national energy
according to local press reports. company that can compete with its global peers
State-owned NNPC Ltd was established last and deliver value to its shareholders, the Nige-
month as an effective replacement for Nigerian rian people.” He also reported that the National
National Petroleum Corp. (NNPC), the national Assembly had confirmed all of his nominations
oil company (NOC). Abuja took this step in line for board and management positions at NNPC
with the Petroleum Industry Act (PIA), which Ltd. ™

P10 www. NEWSBASE .com Week 41 13•October•2021