• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 3 hours New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 1 hour Permafrost Melting Will Cost Us $70 Trillion
  • 3 hours Nothing Better than Li-Ion on the Horizon
  • 6 hours Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 3 hours UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 7 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 7 hours Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 23 hours Countries with the most oil and where they're selling it
  • 11 hours ..
  • 3 hours How many drilling sites are left in the Permian?
  • 24 hours Section 232 Uranium
  • 1 day China To Promote Using Wind Energy To Power Heating
This Legendary Shale Basin Just Broke Its 2011 Production Record

This Legendary Shale Basin Just Broke Its 2011 Production Record

The Haynesville Shale in northeastern…

Did This Gas Major Just Ensure Its Survival?

Did This Gas Major Just Ensure Its Survival?

Santos Ltd. just posted a…

Nigeria Struggles To Keep Oil Production At Quota Levels

Egina Nigeria

Nigeria’s Petroleum Minister Emmanuel Ibe Kachikwu admitted that reducing oil production to the quota assigned by OPEC is a challenge, not least because of the start of production at the Egina oil field.

The offshore field will have a capacity of 150,000 bpd but, Kachikwu said, “We’re not there yet.”

Still, Nigeria is hoping the oil production cut deal OPEC agreed with its non-member partners led by Russia will be extended for another six months beyond the June deadline, Kachikwu told local media.

Interestingly, Nigeria doesn’t have much to do with the success of the deal, which has helped Brent climb to almost US$70.  According to Bloomberg data, the West African country pumped some 1.92 million bpd in March, up by 90,000 bpd from February. Kachikwu, however, said production in March averaged 1.7 million bpd, slightly above the OPEC quota of 1.685 million bpd.

OPEC agreed to take 800,000 bpd off the market last December, with Russia and several other producers agreed to remove an additional 400,000 bpd for a total cut of 1.2 million bpd. Exempt from the previous cuts agreed in 2016, Nigeria had to be convinced to join these cuts, which Saudi Arabia took care of.

According to the Nigerian Petroleum Minister, the deal had succeeded in propping up prices “to a point where both consumers and producers are at least a bit comfortable. I would like to see that go on.” 

Some large importers would probably disagree that prices above US$60 for Brent are comfortable for everyone, but most sellers are certainly happier at this price level. There is doubt, however, that Russia will agree to an extension since it doesn’t need oil to be as expensive as most Middle East producers do. There have been reports that Moscow may only agree to a three-month extension, which would weigh on prices.

By Irina Slav for Oilprice.com

More Top Reads from Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News