FG Aims 2.7mbpd Crude Oil Production as OPEC Pledges to Monitor Quotas
Nigeria has set a target of boosting daily production to 2.7 million barrels of crude and condensate by 2027.
This was disclosed by President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, according to Bloomberg.
She said the improved security around oil production and transportation sites is the key factor that supports the increase in output.
This came as the Organisation of the Petroleum Exporting Countries (OPEC) has affirmed that it will monitor member countries’ adherence to their crude oil production quotas.
Verheijen emphasised that the increase in oil output will be driven in part by oil condensate, a lighter more volatile hydrocarbon that allows Nigeria to remain largely within its OPEC+ crude oil quota of 1.5 million barrels per day.
“The OPEC quota does not include condensate. The target we’ve set for ourselves is a combination of condensate and crude,” she said in an interview at an energy conference in Dar es Salaam, Tanzania last week.
“The idea is to try and demonstrate the capacity for a higher quota as required,” she stated.
The special adviser noted that Nigeria’s oil production has risen from a low of 1.1 million bpd in 2022 as the country seeks to boost revenue to address economic challenges like poverty and deteriorating infrastructure.
In December 2024, crude oil production reached 1.67 million barrels per day while 1.48 million barrels were crude.
Verheijen noted that the removal of fuel subsidies has revitalised the downstream sector, making it commercially viable for the first time in decades.
“The removal of fuel subsidy could also foster further investment in refineries. What that has done is allowed the downstream, mainstream downstream of that sector to now become commercially viable for the first time in decades,” she said.
She added that investments in refineries are now viable due to improved commercial viability in the downstream sector.
Meanwhile, at its 58th meeting of the Joint Ministerial Monitoring Committee which was held via a video conference on Monday, OPEC reviewed the crude oil production data for the months of November and December 2024 and “noted the high overall conformity for OPEC and non-OPEC countries participating in the Declaration of Cooperation.
The committee agreed that the improved conformity further reaffirms the DoC countries’ shared objectives of unity and cohesion.
According to a statement issued after the meeting, the committee welcomed the improved conformity of the Republics of Kazakhstan and Iraq, including the additional voluntary production adjustments.
“The meeting also welcomed renewed pledges by the overproducing countries to achieve full conformity and to resubmit their updated compensation schedules to the OPEC Secretariat for the overproduced volumes, for the period since Jan 2024, before the end of Feb 2025, as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee,” the statement disclosed.
The committee was said to have emphasised the critical importance of achieving full conformity and compensation, and reaffirmed that they will “continue to monitor adherence to the production adjustments agreed upon at the 38th OPEC and non-OPEC Ministerial Meeting held on 5 December 2024.
“The committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non-OPEC countries as agreed upon in the 52nd JMMC held on 1 February 2024.
“The members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2026 as decided at the 38th OPEC and non-OPEC Ministerial Meeting on 5 December 2024.
“Moreover, the members of the JMMC who participated in the additional voluntary production adjustments plan announced on 5 December 2024 reaffirmed their commitment noting that these additional voluntary production adjustments have ensured the stability of the oil market,” the statement announced.
The next meeting of the JMMC is scheduled for April 5, 2025.
