It was reported at the virtual 19th Joint Ministerial Monitoring Committee (JMMC) that held last month, that the Committee asked laggards in the first month of the OPEC deal to submit their compensation plan to the secretariat.
According to reports, OPEC Member Country, Nigeria, who exceeded its production quota in May have complied to the resolutions of the agreement of the 179th OPEC meeting that held on 6th June 2020 by lowering its production rate as well as the supply rate of crude oil to the international market since May 2020.
The Minister of State for Petroleum Resources said that Nigeria was going to fully comply with the production cuts and the Group Managing Director of the National Oil Company of Nigeria, the Nigerian National Petroleum Company (NNPC) said Nigeria is going to reach full compliance by the middle of July 2020.
Nigeria is expected to supply 10 million barrels per day between May and June 2020, 8 million barrels per day between August (formerly July before the extension of the May – June deal at the last OPEC meeting) and December 2020, and 6 million barrels per day from January 2021 to April 2022.
Kuwait and Iraq have also reportedly complied with the output and will be compensating for their overproduction too.
Africa’s largest exporter is now reportedly producing 1.412 million barrels per day, 1.495 million barrels per day and 1.579 million barrels per day for the respective periods in the agreement, as against the 1,829 million barrels per day which was the reference production in October 2018.
The OPEC+ deal went into effect on the first of May as a measure to contain the challenges of the COVID-19 pandemic on the global oil market and to revive market prices and stability amid low supply and a historic drop in oil prices recorded in April.
According to a survey carried out on oil production rate for the month of June for countries adhering to the conditions of the OPEC+, in addition to voluntary cuts by the Kingdom of Saudi Arabia, the United Arab Emirates and Kuwait; oil production was at its lowest in almost three decades.