21-09-04
Nigeria's official production quota allowed by the Organisation of Petroleum Exporting Countries (OPEC) has increased to 2.224 mm bpd. The new output quota will come into effect from November 1, and represents about 4 % above the country's current quota of 2.142 mm bpd which was assigned in August.
The increase was as a result of OPEC's decision to raise production ceiling for
10 of its members by 1.0 mm bpd to 27.0 mm bpd. OPEC said it was raising its
official production ceiling to help moderate oil prices that were making
consumers uncomfortable.
Amid clamour by oil producers in the country for a higher OPEC quota to match production back home, Nigeria has so far got an upward review in its quota thrice this year. First it was from 1.93 mm bpd in April to 2.101 mm bpd in July and then to 2.142 mm in August.
However, oil production in Nigeria has actually surpassed the quota allowed,
even reaching an all time high of 2.7 mm bpd at one point. This followed signals
from OPEC secretariat suspending its quota system to allow its members meet the
growing demand for crude.
A release by OPEC showed that Saudi Arabia's quota rose to 8.775 mm bpd from 8.45 mm bpd, while Iran got a new quota of 3.964 mm bpd and Venezuela, 3.107 mm bpd. Meanwhile, total OPEC crude output edged up by just 80,000 bpd last August to an average 29.75 mm bpd, constrained by a new spate of export difficulties for Iraq, a survey showed.
Excluding Iraq, however, the OPEC 10 produced an average 27.97 mm bpd in August,
an increase of 250,000 bpd from July's 27.72 mm bpd. Saudi Arabia maintained
production at the higher levels aimed at cooling downstreaming oil prices,
pushing output up by a further 100,000 bpd, to 9.5 mm bpd. Indications from the
kingdom suggested the Saudis planned to maintain crude volumes around the 9.4 mm
to 9.5 mm bpd level in September.
Iraqi output, which had averaged 1.95 mm bpd in July, fell by 170,000 bpd, to average just 1.78 mm bpd. The only other country to see its volumes fall was Indonesia, which pumped an average 950,000 bpd over the month, down from 960,000 pd in July.
Iran and Nigeria maintained output at July levels of 3.98 mm bpd and 2.4 mm bpd
respectively. Algeria, Kuwait, Libya, Qatar, the UAE and Venezuela provided
smaller increases ranging between 10,000 bpd in the case of Algeria and Qatar
and 60,000 bpd for Kuwait.
With oil prices remaining stubbornly high, OPEC has encouraged its members to
open the taps, and the latest output boosts have taken OPEC 10 production close
to 2 mm bpd above their current 26 mm bpd ceiling.
Source: LiquidAfrica