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Nigeria Accepts OPEC 1.5mbpd 2024 Oil Output Quota

crude oil wells

By Adedapo Adesanya

Nigeria will accept and work with a production quota of 1.5 million barrels of crude oil per day in 2024 as the country aims to grow on the back of its oil resources, following a revision done by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+.

According to a statement issued by the Press and Public Relations unit of the Ministry of Petroleum Resources, Thursday’s meeting of the 23-man group addressed crucial aspects, including the completion of assessments by independent sources (IHS, Wood Mackenzie, and Rystad Energy) on the projected production levels for Angola, Congo, and Nigeria in 2024.

The assessments concluded production estimates that Nigeria as Africa’s leading oil producer will produce 1.5 million barrels per day while Angola was given 1.11 million barrels per day and 227,000 barrels per day was granted to Congo in alignment with prior decisions set forth during the 35th OPEC and non-OPEC Ministerial Meeting in June.

“Emphasizing a steadfast commitment to the Declaration of Cooperation (DoC), the Participating Countries reaffirmed their dedication to the framework established since its inception on December 10, 2016.

“This commitment has been consistently endorsed in subsequent meetings, notably at the 35th OPEC and Non-OPEC Ministerial Meeting on June 4, 2023, and further solidified through the Charter of Cooperation ratified on July 2, 2019,” parts of the statement said.

While Angola has raised objections, Nigeria has not done so and due to current circumstances, the country will be looking to align with this target.

“This gathering decisively dispelled speculations of discord among OPEC countries regarding the acceptance of their 2024 quotas, culminating in a successful outcome that is expected to fortify market dynamics, fostering stability and sustainable growth within the industry,” the statement added.

At the meeting, significant strides were made towards maintaining a stable and balanced oil market as well as the welcome of one of South America’s top producers, Brazil to the wider OPEC+ group.

Brazil announced its forthcoming inclusion into the OPEC+ Charter of Cooperation, effective from January 2024.

During the 187th meeting of the conference of OPEC members, which was held before the main meeting, some other crucial appointments were announced.

Libya’s oil Minister, Mr Mohammed Oun was appointed as the Chairman of the OPEC Board of Governors for the year 2024, accompanied by Mr Gabriel Aduda, OPEC Governor of Nigeria, who assumes the role of Alternate Chairman for the OPEC Board of Governors for the year 2024.

The 37th OPEC and non-OPEC Ministerial Meeting is scheduled to take place on June 1, 2024, in Vienna.