The Organisation of the Petroleum Exporting Countries (OPEC) has raised Nigeria’s oil production quota from the 1.735 million barrels per day (mbpd) target approved in May 2022 to a new target of 1.772mbpd for June 2022.
A statement issued on Thursday said OPEC took the decision at its 28th OPEC and non-OPEC Ministerial Meeting despite Nigeria missing its approved target for April 2022 by 40,000bpd.
The new target is 19,000bpd higher than the approved quota for May 2022.
OPEC also adjusted upward the monthly overall production by 432,000bpd for the month of June 2022 with a target production of 42.558mbpd.
“Following the conclusion of the OPEC 28th and non-OPEC Ministerial Meeting, held via video conference on May 5, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market.
“It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic,” the statement said.
It said the meeting reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020 and endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on July 18, 2021.
The statement said the meeting also reconfirmed the production adjustment plan and the decision to adjust upward the monthly overall production by 432,000bpd for the month of June 2022.
It said the meeting reiterated the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022.
According to the statement, compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting while the next meeting will be held on June 2, 2022.
A Reuters survey showed that Nigerian output posted a 40,000bpd decline in April 2022.
The survey said that “force majeure” remains in place on the Bonny Light export stream.
It noted that in spite of the decline in production by Nigeria, OPEC pumped 28.58mbpd in April, up 40,000 bpd from the previous month and short of the 254,000bpd increase called for under the supply deal.