Nigeria is keeping its promise to comply with the OPEC+ oil cut agreement as it has cut production to 185,000 barrels per day (bpd).
According to latest data obtained from the Organization of Petroleum Exporting Countries, the country’s crude oil production plunged by 185,000 barrels per day to 1.59 million bpd in May,
An outstanding 9.7 million barrels per supply was to be cut from May to June but the deal was extended this month to July.
However, Nigeria failed to keep its side of the agreement since the new cut which prompted the country through its Minister of State for Petroleum Resources, Chief Timipre Sylva, to promise a compensation cut in oil production. According to him, Nigeria would be producing 1.412 million bpd in May and June, in addition to condensate production of between 360,000 and 460,000 bpd exempted from OPEC curtailment.
But OPEC said the country’s production level, based on secondary sources, was 180,000 bpd or about 13 percent higher than the quota given to it.
The group uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries. Nigeria did not provide its production figure for May, the report showed.
The number of active oil rigs in the country fell by 50 percent in May amid the coronavirus-induced collapse in prices and demand for crude.
Data obtained from Baker Hughes Incorporated and the Organisation of Petroleum Exporting Countries showed that Nigeria’s rig count fell to eight in May from 16 in April and 21 in March.