Petroleum Minister affirms Nigeria’s commitment to OPEC despite production cuts

The Minister of State for Petroleum, Heineken Lokpobiri, has reaffirmed the nation’s commitment to the membership of the Organisation of Petroleum Exporting Countries (OPEC) after Angola, Africa’s second-largest oil producer exited the cartel.

Mr. Lokpobiri disclosed this in a statement on Thursday where he stated that Nigeria will continue to engage with the group to address the country’s concerns.

He said, “Our collaboration within the organisation remains pivotal in fostering stability and sustainability in the oil market.

“We are resolute in our dedication to OPEC’s objectives while actively engaging with the organisation to address concerns that resonate not only within our nation’s borders but across the entire continent.”

Nigeria was assigned a 2024 production target of 1.5 million barrels per day (bpd) but has announced its intention to exceed this goal by producing at least 1.8 million bpd.

Earlier in the week, Angola announced its exit from OPEC saying the group no longer served the country’s interest.

The country’s energy Minister said, “We feel that Angola currently gains nothing by remaining in the organization and, in defence of its interests, decided to leave,”

Angola’s production quota for 2024 was slashed by oil cartels by around 350,000 barrels daily from 1.46 million bpd to 1.1 million bpd.

Angola’s oil sector has seen low investment resulting in low production. The nation was provided with a five-month extension to showcase increased production capacity to two external consultancies and analysts from S&P Global, aiming to avoid a reduction in its quota. However, it failed to do so.

OPEC had also in its production quota for 2024 allocated 1.5 million bpd for Nigeria– a drop from the 1.78 million bpd in 2023.

Nigeria has sought a daily production quota of 1.8 million barrels as it wants to shore up production and revenue from the sector.