The Minister of State for Petroleum Resources, Chief Timipre Sylva, said Nigeria joined the OPEC+ to cut crude oil supply by 10 million Barrel Per Day.
Sylva disclosed this at the ongoing 9th Organisation of Petroleum Exporting Countries (OPEC) and Non OPEC ministerial webinar meeting.
“Nigeria joined OPEC+ to cut supply by up to 10mbpd between May and June 2020, Eight Million Barrels per day between July and December 2020 and Six Million barrels per day from January 2021 to April 2022, respectively.
“Based on reference production of Nigeria of October 2018 of 1.829mbpd of dry crude oil, Nigeria will now be producing 1.412 mbpd, 1.495mbpd and 1.579mbpd respectively for the corresponding periods in the agreement.
“This is in addition to condensate production of between 360 and 460 KBOPD of which are exempt from OPEC curtailment,” he said.
He noted that the agreement awaited close out of ongoing engagement with Mexico to agree on its full participation.
According to him, it is expected that this historic intervention when concluded will see crude oil prices rebound by at least 15 dollars per barrel in the short term.
This, he said would enhance the prospect of exceeding Nigeria’s adjusted budget estimate that is currently rebased at 30 dollars per barrel and crude oil production of 1.7 Million Barrels per day.
“The price rebound may translate to additional revenues of not less than 2.8 Billion Dollars for the Federation.
“It is therefore pleasing to note that despite the production curtailments that this historic agreement will entail, that all planned industry development projects would progress .
“They will also be delivered after the termination of the 9th OPEC/Non-OPEC Ministerial Meeting Agreement on adjustments in April 2020.