There are indications that Nigeria’s hopes of increasing oil production output may not be actualised with the new conditions set by the Organisation of Petroleum Exporting Countries (OPEC).
It was gathered that among the conditions set, OPEC is resolute that no country, including Nigeria, which has under-performed in meeting its monthly oil quota allocation would have its baseline increased.
According to OPEC, it is illogical that Nigeria which has consistently failed to meet its quota in the last couple of months, would be asking for an increase when it was obvious that the country was having challenges pumping its portion of oil.
The oil cartel said Nigeria had not met the condition which would warrant an increase in its baseline and by extension its monthly quota, and that until that requirement is met, it will be difficult to effect a production increase.
In August, Nigeria requested a higher baseline but has failed to meet the existing crude oil supply quota allocated to it by OPEC, underperforming by 90,000 barrels per day (bpd) in August, or roughly 2.8 million barrels during the month. This made its production of 1.43 million bpd one of the lowest in five years and in the same month, the country which potentially has the capacity to produce two million bpd, slumped from its July figure of 1.520 million bpd.
Meanwhile, as oil prices soar above $80 per barrel amid fears over the global energy crunch, OPEC has dismissed insinuations by some observers that the cartel isn’t doing enough to steady the market.
OPEC Secretary-General Sanusi Barkindo said the blame was elsewhere, explaining that the turmoil spreading from natural gas markets shows that the energy transition is impeding vital investment in supply.
