The Organisation of the Petroleum Exporting Countries (OPEC) has increased the oil production quota of Nigeria from the existing 1.735 million barrels per day (mbpd) target that was approved in May 2022 to a new target of almost 1.772mbpd for June 2022.
A statement that was issued on Thursday, May 5, stated that OPEC took the decision at its 28th OPEC and non-OPEC Ministerial Meeting in spite of Nigeria missing its agreed target for April 2022 by 40,000bpd.
The recent target is 19,000bpd is higher than the earlier approved quota for May 2022.
OPEC also revised the overall monthly production upward by almost 432,000bpd for June 2022 with a target production of around 42.558mbpd.
“Observing the conclusion of the OPEC 28th and non-OPEC Ministerial Meeting, held through videoconference on May 5, it was stated that continuing oil market fundamentals and the consensus on the outlook pointed towards a balanced market.”
“It further highlighted the continuing results of geopolitical factors and problems related to the ongoing pandemic,” the statement said.
It said that the meeting again confirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting held on April 12, 2020, and endorsed in many meetings involving the 19th OPEC, as well as the non-OPEC Ministerial Meeting, held on July 18, 2021.
The statement further said that the meeting also reconfirmed the alteration in the production plan and the decision regarding adjusting the overall monthly production by almost 432,000bpd for June 2022.
The meeting reiterated the significance of sticking to full harmony and to the compensation mechanism, taking benefit of the extension of the compensation period till the end of June 2022.
It stated that despite the drop in production by Nigeria, OPEC pumped 28.58mbpd in April, up 40,000 bpd from the last month and short of the 254,000bpd expansion called for under the supply deal.