Nigeria is to lose about 226,300,000 million barrels of oil production in 2019, representing about 27 per cent of its current year’s target. The loss is sequel to the Organisation of Petroleum Exporting Countries (OPEC) decision to cut the country’s production quota from January 1, 2019.
According to an arrangement by the oil cartel, OPEC members will reduce production by 800,000 barrels per day (bpd), while non-OPEC producing countries will cut production by 400,000bpd to bring total oil cuts to 1.2 million bpd.
The move to cut Nigeria’s crude oil production to 1.68 million bpd for the first half of 2019 was part of efforts by the cartel to stabilise and firm crude oil prices at the international market. Nigeria with a daily production quota of 2.3 million (though never attained) had its production quota slashed to 1.68 million by the cartel last December.
The cut represents about 620,000 barrels per day, which, when multiplied by 365 days, translates to about 226,300,000 million for 2019.