VIENNA, Austria – The Organisation of Petroleum Exporting Countries and its allies, OPEC, has decided to cut Nigeria’s oil output, excluding condensate, by 20.7% to 1.38 million barrels per day (mb/d), down from 1.74 mb/d.
The decision was taken to achieve stability in the global oil market.
The new output target will take effect from January 2024.
It was reached during the 49th Meeting of the Joint Ministerial Monitoring Committee, JMMC, and the 35th OPEC and non-OPEC Ministerial Meeting, held in Vienna, Austria on Sunday, June 4, 2023.
Under the body’s new voluntary adjustment program, Saudi Arabia is set to produce 10.48 mb/d, the highest output by a single nation, while Sudan will produce the least with 64,000 bpd.
The program reveals that member states, with a collective output of nearly 25 mb/d, still account for the majority of global oil output, while non-OPEC countries contribute 15.5 mb/d.
In a statement, OPEC declared its ongoing commitment to achieving stability in the face of many global market challenges.
It decided to reaffirm the Framework of the Declaration of Cooperation (DoC), signed on December 10, 2016, and the Charter of Cooperation, signed on July 2, 2019.
The alliance agreed to “adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024.”
The Joint Ministerial Monitoring Committee, JMMC, was granted the authority to hold additional meetings or request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, if necessary.
The statement reiterated the importance of full conformity with the DoC and compensation by countries that produce above their required production level.
