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AfrOil COMMENTARY AfrOil

(Photo: Total)

Nigerian oil production:

patterns and problems

The West African country has reiterated its pledges to remain in compliance with OPEC+ production

quotas, but it is likely to keep up its long-standing habit of quota-busting

AT a glance, Nigeria’s relationship with OPEC OPEC and Africa’s biggest producing country.”
seems to be on a good footing. The statement went on to say that the Nigeria
WHAT: Over the last week, Nigerian officials have was making a significant contribution to efforts
Nigeria says it is on track reiterated their commitment to complying to stabilise world crude markets. The country’s
to keep output levels at with the cartel’s production quotas. On July 30, “support [for] global market stability and energy
1.412mn bpd between Timipre Sylva, Minister of State for Petroleum co-operation is significant and gives confidence
July and September. Resources, said that the West African country to operators and future investors seeking to do
was on track to keep average crude output levels business in West Africa,” it said.
WHY: down at just 1.412mn barrels per day (bpd) in The reality appears to be more complex.
This figure may not be May, June and July. This is in line with the quotas
low enough to meet set under the latest version of the OPEC+ accord Past performance
the OPEC+ group’s signed by OPEC and non-member companies, On the one hand, Sylva’s claim has to be
expectations.
he said during a webinar organised by Seplat considered against the backdrop of past events
Petroleum, an independent Nigerian producer. – and that backdrop is not exactly flattering for
WHAT NEXT: Sylva was speaking shortly after the African Nigeria. The West African country has a long
Despite concerns about
weak prices and sluggish Energy Chamber issued a statement describing track record of failing to comply with OPEC’s
demand, Nigeria will a recent meeting between Nigerian officials and production policies, and it has retained its quo-
probably continue to representatives of OPEC as “yet another signal ta-busting habits as a signatory of the OPEC+
overproduce. of the strong dialogue and co-operation between agreement.

P4 www. NEWSBASE .com Week 31 05•August•2020