Nigeria’s quota was 1.742 million bpd earlier this year, but due to its underproduction of more than 400,000 bpd, the output cap for Nigeria was lowered to 1.38 million bpd at the OPEC+ meeting in early June.
The required production level for Nigeria may be updated to equal the average production that can be achieved in 2024, as assessed by the three independent sources (IHS, Wood Mackenzie, and Rystad Energy) specialized in oil upstream by the next OPEC+ meeting to be held by the end of 2023, OPEC said.
Nigeria’s stated Production Plan in 2024 is 1.578 million bpd, subject to verification, and if verified, then the number will be reflected as required production for 2024, OPEC added.
Nigeria’s oil production is around 1 million bpd below its capacity. The government has cited a lack of investments, a shortage of funding sources because of the energy transition, and insecurity among the factors driving the situation.
“Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” Gbenga Komolafe, chief executive at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said in May.
SOURCE: Oilprice.com