The Organisation of Petroleum Exporting Countries has announced that Nigeria is projected to produce 1.5 million barrels per day of oil in 2024.
This decision came after OPEC’s meeting on Thursday, adjusting Nigeria’s quota higher than the initially proposed 1.38 million barrels per day in June 2023.
The updated oil production quota for 2024, while higher than the initial proposal, is still less than Nigeria’s 2023 quota of 1.78 million barrels per day.
According to OPEC’s press release, the assessment for production levels in 2024 by independent sources indicates Angola at 1,110 t/bd, Congo at 277 t/bd, and Nigeria at 1,500 t/bd.
The press release reads in part “Following the decision of the 35th OPEC and non-OPEC Ministerial Meeting, the completion of the assessment by the three independent sources (IHS, Wood Mackenzie and Rystad Energy) for production level that can be achieved in 2024 by Angola, Congo and Nigeria as follows: Angola at 1,110 t/bd, Congo at 277 t/bd and Nigeria at 1,500 t/bd.”
The meeting, initially postponed due to the reluctance of Nigeria and other African oil producers to accept significantly reduced production quotas, resulted in a collective decision to decrease oil production at the beginning of the next year.
The cut totals approximately 2.2 million barrels of oil per day for OPEC+ countries.
Saudi Arabia leads this reduction, maintaining its current cut. The UAE and Iraq have also committed to reducing their oil production by 163,000 barrels per day and 220,000 barrels per day for the first three months of the year, respectively.
These countries, along with others, plan to gradually increase production in the following months based on market conditions.
Despite challenges, Nigeria demonstrated resilience in reaching 1.5 million barrels per day in both September and October 2023.
OPEC+ is motivated to reduce oil production due to declining prices, concerns about a potential global economic slowdown in 2024, and expectations of oversupply.
Notably, Brazil is set to become a part of OPEC in January 2024.
