.OPEC, Haitham Al-Ghais of Kuwait emerges Secretary-General of OPEC

. Records 302,000 daily under-production

. Oil theft, illegal refining are still major issues

. By Udeme Akpan, Energy Editor

THE Organisation of Petroleum Exporting Countries, OPEC, yesterday, put Nigeria’s January 2022 oil output at 1.399 million barrels per day, mb/d.

This latest output, excluding Condensate, showed that the nation recorded an under-production of about 302,000 barrels per day, compared to its 1.701 mb/d OPEC quota.

At the current $93 per barrel and official exchange rate of N416.67 to a US dollar, the data obtained from the OPEC February 2022 Monthly Oil Market Report, MOMR, further showed that the nation loses about N11.7 billion daily.

However, the production of about 400,000 barrels of Condensate daily will enable the nation to generate additional revenue for the funding of its 2022 budget, which was based on 1.8 mb/d and $62 per barrel.

Nevertheless, the inability of Nigeria and other OPEC members to meet their quotas has consistently constrained the organisation from meeting its collective quota, thus causing oil prices to head toward $100 per barrel.

Last month, OPEC, and its allies, popularly known as OPEC+, had suffered a production shortfall of 190,000 barrels per day, bpd.

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OPEC+ was expected to produce an additional 400,000 bpd in January 2022, as part of measures target at meeting global demand as the global economy continues to gasp for more after the Coronavirus pandemic lockdown, which crippled demand in many nations.

But data obtained by Vanguard from OPEC had indicated that OPEC+ produced by 210,000 bpd, showing a shortfall of 190,000 bpd,

According to OPEC, the largest under producers, in terms of percentages included, Angola, Congo, Equatorial Guinea, and Nigeria, which output is mainly affected by increased pipeline vandalism, oil theft and illegal refining in Niger Delta.

However, commenting on the development, a market analyst, who pleaded anonymity, had said: “ Inventory is getting lower as the global economy begins to pick up despite the Omicron variant. Already some major economies are relaxing lockdowns.

 The Lead promoter, EnergyHub Nigeria, Dr Felix Amieyeofori, had also said: “Inventory is getting lower as the global economy begins to pick up despite the Omicron variant. Already some major economies are relaxing lockdowns.

“Generally, the global economy will continue to grow in 2022 with increasing vaccinations. That will also increase demands for crude oil, thus causing prices to rise.”

 In a statement obtained by Vanguard, OPEC stated: “Following the conclusion of the 25th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference on Wednesday, 2 February 2022, and in view of current oil market fundamentals and the consensus on the outlook, the OPEC and participating non-OPEC oil-producing countries in the Declaration of Cooperation (DoC) decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th ONOMM on 18 July 2021.”

The organisation also, “reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of March 2022, as per the attached schedule.

 “Reiterate the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022. Compensation plans should be submitted in accordance with the statement of the 15th ONOMM.”

Vanguard News Nigeria

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