The Organisation of Petroleum Exporting Countries(OPEC+) and its allies have decided to reduce Nigeria’s oil output, excluding condensate, by 20.7 per cent to over one million (1.38m) barrels per day from January 2024.
The decision was made during the 49th Meeting of the Joint Ministerial Monitoring Committee and the 35th OPEC and non-OPEC Ministerial Meeting in Vienna, Austria, on Saturday. The decision aimed to achieve stability in the global market.
According to the new voluntary adjustment programme, Saudi Arabia would produce the highest amount of oil, at over ten million (10.48m) barrels per day, while Sudan would produce the least at sixty-four thousand (64,000) bpd.
OPEC member states
whose collective output stood at almost 25 mb/d still account for a bulk of the global oil output while non-OPEC countries account for 15.5 mb/d, according to the statement.
OPEC+ held that despite many issues and problems in the global market, it remained committed to achieving stability.
The statement read:
“In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.
It will “Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which is to be distributed as per the attached table.
“Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months.
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.
“Grant the JMMC the authority to hold additional meetings or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.
“Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries.
“Reiterate the critical importance of adhering to full conformity, and subscribe to the concept of compensation by those countries who produce above the required production level as per the attached table, in addition to their already decided production levels.”