Though Nigeria is still awaiting final decisions of OPEC and non-OPEC members on crude oil production output, the country may reduce her crude oil exports by 417,000 barrels per day based on official figures sourced by Daily Trust at the weekend.
Nigeria Thursday joined other OPEC counterparts in an effort curtailment of crude oil production to rebalance and stabilize the global oil markets.
Nigeria joined OPEC+ to cut supply by up to 10mb/d per day between May and June 2020, eight million b/d between July and December 2020 and six million b/d from January 2021 to April 2022, respectively.
The Minister of State Petroleum Resources, Timipre Sylva, said in a statement. "Based on reference production of Nigeria of October 2018 of 1.829 million barrels per day of dry crude oil, Nigeria will now be producing 1.412 million barrels per day, 1.495 million barrels per day and 1.579 million barrels per day respectively for the corresponding periods in the agreement.
"This is in addition to condensate production of between 360-460 KBOPD of which are exempt from OPEC curtailment", the minister stated. But the agreement awaits close out of ongoing engagement with Mexico to agree on its full participation, he added.
It is expected that intervention when concluded will see crude oil prices rebound by at least $15 per barrel in the short term, thereby enhancing the prospect of exceeding Nigeria's adjusted budget estimate that is currently rebased at $30 per barrel and crude oil production of 1.7 Million Barrels per day.