The Organization of the Petroleum Exporting Countries (OPEC) rose from its 19th virtual meeting, comprising both members and non-OPEC members (ONOMM) on Sunday, with a decision to adjust upward their overall production by 0.4 mb/d on a monthly basis starting from August, until phasing out the 5.8 mb/d production adjustment.
The ONOMM, will in December, assess market developments and participating countries’ performance.
Consequently, Nigeria’s daily production now stands at 1,829 mb/d effective August 2021. That of Saudi Arabia is 11,500 mb/d, Angola, 1,528 mb/d and the United Arab Emirates, 3,500 mb/d.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said that the target production is three million mb/d (subject to OPEC quota) from the current production capacity of 2.3 mb/d.
The meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling, as the economic recovery continued in most parts of the world with the help of accelerating vaccination programmes.
The meeting also welcomed the positive performance of participating countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 113 per cent in June (including Mexico), reinforcing the trend of high conformity by participating countries.
In view of current oil market fundamentals and the consensus on its outlook, the meeting resolved to reaffirm the framework of the cooperation, signed on December 10 , 2016, and further endorsed in subsequent meetings, including on April 12, 2020.
The meeting also agreed to extend the decision of the 10th OPEC and non-OPEC ministerial meeting in April 2020 until the December 31, 2022.
The (ONOMM) said it would adhere to the mechanism to hold monthly OPEC and non-OPEC ministerial meetings for the entire duration of the Declaration of Cooperation, to assess market conditions and decide on production level adjustments for the following month, endeavoring to end production adjustments by the end of September 2022, subject to market conditions.
The meeting reiterated the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021. Compensation for the good plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
The meeting decided to hold the 20th OPEC and non-OPEC Ministerial Meeting on September 1, 2021.