By G9ija
THE Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC oil ministers, yesterday, increased Nigeria’s oil quota to 1.772 million barrels per day, mbpd for June, from 1.753 mbpd for May 2022, according to its June 2022 Required Production released yesterday.
This showed a marginal increase of 19,000 bpd or one percent when compared to the previous quota, which the nation was unable to meet.
However, with Nigeria’s crude oil grade, Bonny Light at $110 per barrel, the new quota translates to daily oil revenue of $194.92 million or N81.67 billion.
Under the new quota, Nigeria’s allocation remains the highest in Africa, followed by Angola and Algeria, with 1.480 mbpd and 1.023 mbpd respectively.
However, while Sudan got 73 bpd (the least) as its quota, the ministers put the oil quota of Russia, which oil has already been banned by the European Union at 10,663 mbpd, apparently the highest.
In a statement obtained by Vanguard, OPEC stated: “Following the conclusion of the 28th OPEC and non-OPEC Ministerial Meeting, held via video conference on 5th May, 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 OPEC and participating non-OPEC oil-producing countries, therefore, decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.”
Speaking at the Energy Perspective, a Vanguard Live Programme, Dr. Diran Fawibe, Chairman of International Energy Services Limited, said the market might continue to record increased instability as Nigeria will not be able to meet its quota, apparently because of increased pipeline vandalism, oil theft and illegal refining in the Niger Delta.
He said: “The oil and gas companies have not been investing much, partly because of the delay associated with the passage of the nation’s Petroleum Industry Bill, PIB, which has now become an Act. Consequently, a lot of investments went to other nations, leading to the low production capacity of the country.
“The nation’s ageing facilities also affected the industry. Unlike in the past when Nigeria was able to increase production to support OPEC whenever other nations had problems, Nigeria cannot do so at this time. Even with its commercial condensate, Nigeria still struggles to produce about 1.4 mbpd.”
Recall also that the federal government had blamed the country’s inability to attain the approved target to activities of vandals, refineries turnaround maintenance, amongst others.