Nigeria sets July for OPEC+ output cut implementation

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC) Mallam Mele Kyari yesterday said the country will implement the output cuts agreed with non- members of the Organisation of Petroleum Exporting Countries (OPEC+) by the middle of next month at the latest.

‘’Definitely by the end of June, we’ll see full compliance from Nigeria. It will be done in the first half of July in the worst-case scenario. Over the past 10 days, the country has been cutting more than required under the OPEC+ pact, ’’ the NNPC chief said.

Nigeria and Iraq had been accused of being unable to comply with the allocated output cut for May and June as were agreed in the OPEC+ deal as part of measures to help rebalance the oil market.

The alliance met over the weekend and agreed to extend the output cut of 9.7 million barrels daily for an extra month. The latest agreement by the 23 nation alliance is hinged on promises from Nigeria and the other non-compliant members to make up for their past disregard of their output quota.

Saudi and Russia agree to cut oil by 20 million barrel, further oil production cut required to keep oil price above $40 in 2020, OPEC + deal to boost Nigeria’s earnings by $2.8 billion.

Minister of State,  Petroleum Resources, Timipre Sylva, had admitted that the country implemented only about 52 per cent of the designated output cut in May when it pumped 1.613 million barrels per day.

The country had earlier reaffirmed its commitment to OPEC+ new deal on the extension of the first phase of output cut of 9.7 million barrels per day. They promised to continue to collaborate with other OPEC+ member countries to come up with measures that will help rebalance and stabilise the oil market.

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