Tag: OPEC

Arising from its 58th Meeting of the Joint Ministerial Monitoring Committee No 1/2025 via videoconference yesterday, the Organization of Petroleum Exporting Countries (OPEC) promised to monitor compliance with member states compliance with their production quotas.

The oil cartel also replaced Rystad Energy and the U.S. Energy Information Administration (EIA) with Kpler, OilX, and ESAI as secondary sources for assessing crude oil production and compliance among participating countries.

Public Relations Coordinator at OPEC, Dr. Umar Gwandu, disclosed this in a statement from the secretariat.

“After thorough analysis from the OPEC Secretariat, the Committee replaced Rystad Energy and the Energy Information Administration (EIA) with Kpler, OilX, and ESAI, as part of the secondary sources used to assess the crude oil production and conformity of the DoC Participating Countries, effective 1 February 2025,” the statement said.

OPEC said the “committee emphasized the critical importance of achieving full conformity and compensation, and reaffirmed that they will continue to monitor adherence to the production adjustments agreed upon at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 5 December 2024.”

The statement recalled that the 58th Meeting of the Joint Ministerial Monitoring Committee (JMMC) took place via videoconference yesterday.

The JMMC reviewed the crude oil production data for the months of November and December 2024 and noted the high overall conformity for OPEC and non-OPEC countries participating in the Declaration of Cooperation (DoC).

The statement reads in part: “The improved conformity further reaffirms the DoC countries’ shared objectives of unity and cohesion.

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“The Committee welcomed the improved conformity of the Republics of Kazakhstan and Iraq, including the additional voluntary production adjustments.

“The meeting also welcomed renewed pledges by the overproducing countries to achieve full conformity and to resubmit their updated compensation schedules to the OPEC Secretariat for the overproduced volumes, for the period since Jan 2024, before the end of Feb 2025, as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).

“The Committee emphasized the critical importance of achieving full conformity and compensation, and reaffirmed that they will continue to monitor adherence to the production adjustments agreed upon at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 5 December 2024.

“The Committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non-OPEC countries as agreed upon in the 52nd JMMC held on 1 February 2024.

“The Members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2026 as decided at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) on 5 December 2024.

“Moreover, the members of the JMMC who participated in the additional voluntary production adjustments plan announced on 5 December 2024 reaffirmed their commitment noting that these additional voluntary production adjustments have ensured the stability of the oil market.

“The next meeting of the JMMC (59th) is scheduled for 5 April 2025.”

Arising from its 58th Meeting of the Joint Ministerial Monitoring Committee No 1/2025 via videoconference on Monday, the Organization of Petroleum Exporting Countries (OPEC) vowed to monitor compliance with member states compliance with production quotas.

This was made known in a press statement the organization issued on the outcome of the conference.

OPEC said, the “committee emphasized the critical importance of achieving full conformity and compensation, and reaffirmed that they will continue to monitor adherence to the production adjustments agreed upon at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 5 December 2024.”

The statement recalled that the 58th Meeting of the Joint Ministerial Monitoring Committee (JMMC) took place via videoconference on Monday, 03 February 2025.

The JMMC reviewed the crude oil production data for the months of November and December 2024 and noted the high overall conformity for OPEC and non-OPEC countries participating in the Declaration of Cooperation (DoC).

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The statement reads in part: “The improved conformity further reaffirms the DoC countries’ shared objectives of unity and cohesion.

“The Committee welcomed the improved conformity of the Republics of Kazakhstan and Iraq, including the additional voluntary production adjustments.

“The meeting also welcomed renewed pledges by the overproducing countries to achieve full conformity and to resubmit their updated compensation schedules to the OPEC Secretariat for the overproduced volumes, for the period since Jan 2024, before the end of Feb 2025, as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).

“The Committee emphasized the critical importance of achieving full conformity and compensation and reaffirmed that they will continue to monitor adherence to the production adjustments agreed upon at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 5 December 2024.

“The Committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non-OPEC countries as agreed upon in the 52nd JMMC held on 1 February 2024.

“The Members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2026 as decided at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) on 5 December 2024.

“Moreover, the members of the JMMC who participated in the additional voluntary production adjustments plan announced on 5 December 2024 reaffirmed their commitment noting that these additional voluntary production adjustments have ensured the stability of the oil market.

“After thorough analysis from the OPEC Secretariat, the Committee replaced Rystad Energy and the Energy Information Administration (EIA) with Kpler, OilX, and ESAI, as part of the secondary sources used to assess the crude oil production and conformity of the DoC Participating Countries, effective 1 February 2025.

“The next meeting of the JMMC (59th) is scheduled for 5 April 2025.”

The Organisation of the Petroleum Exporting Countries (OPEC) has projected global oil demand growth rate at 1.4 million barrels per day (mb/d) in 2025, with a similar growth rate expected in 2026.

In its January 2025 report, OPEC projected a robust global economic expansion and healthy oil demand growth for 2025 and 2026. According to the report, demand in the region of the Organisation for Economic Cooperation and Development (OECD) is expected to grow by 0.1 mb/d, while the non-OECD region is expected to drive demand growth by accounting for 1.3 mb/d of the total increase in both 2025 and 2026.

“On a regional basis, OECD oil demand is forecast to expand by around 0.1 mb/d, y-o-y, entirely from the Americas, while non-OECD oil demand is expected to witness growth of around 1.3 mb/d, mostly in India, China, Other Asia, the Middle East, and Latin America.” Among other factors, the growth projection is hinged on an anticipated growth in the global economy which is expected to grow by 3.1 per cent in 2025 and 3.2 per cent in 2026. OPEC said that the expected growth in the world economy is to be driven by steady growth in major economies, including the US, Eurozone, and Japan.

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Non-OECD economies, particularly China and India, are also projected to sustain their robust growth, contributing significantly to global economic expansion.

“This outlook assumes continued inflation normalization through 2026, providing support for further adjustments in monetary policies in major economies. The services sector is expected to drive global growth, alongside an expected gradual recovery in the industrial sector, despite prevailing uncertainties,” the report noted. The growth in global oil demand is expected to be driven by transportation fuels, particularly aviation and road mobility.

“Petrol requirements are also set to see support from steadily rising road mobility in major consuming countries and regions, such as China, the Middle East, India and the US. Both on-road diesel, including trucking, as well as industrial, construction and agricultural activities in non-OECD countries are expected to support diesel demand. Light distillates are projected to be supported by petrochemical capacity additions and margins, mostly in China and the Middle East,” the report added. On the supply side, non-OPEC liquids production is expected to grow by 1.1 mb/d in 2025 and 2026, driven primarily by the United States, Brazil, Canada, and Norway. OPEC also reported that crude oil production by countries participating in the Declaration of Cooperation (DoC) dropped by 14,000 barrels per day (tb/d) in December to an average of 40.65 mb/d.

• Recorded 1.48mb/d output

In December 2024, Nigeria met the crude oil production quota of the Organisation of Petroleum Exporting Countries (OPEC) by 98.97 per.

The cartel’s average daily quota for the month under review was 1.5million barrels per (mb/d) of crude oil.

However, the country’s output was 1.48mb/d of crude oil, 49,276bpd of blended condensed, and 133,699 unblended condensate, totalling 1.66mb/d.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) broke the news in its “Oil Production Status Report” for December 2024 yesterday.

“The average crude oil production was 98.97 per cent of OPEC quota (1.5mbpd),” said NUPRC.

According to the document, the lowest and peak production in December were 1.57mb/d and 1.79mb/d respectively.

The report, however, recalled that the country’s output was 1.69mb/d in November 2024.

This was an indication that an average of 22,925 b/d declined in December.

The country continued to eye an average of 2mb/d production in the year under review.

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In its third anniversary last year, the NUPRC unfolded plans to hit 2mb/d with the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri insisting the country which recorded 2.4mb/d in 2020 was capable of producing 3mb/d.

Besides, as the Nigerian National Petroleum Company Limited (NNPCL) announced a production of 1.8mb/d in November, its Board of Trustees Chairman, Chief Pius Akinyelure charged it to hit 3mb/d out. While the NNPCL Chief Executive Officer GCEO Malam Mele Kyari said 2mb/d production was realistic he swiftly noted how difficult it would be to meet the board’s task.

Throughout the year, the industry waged a sustainable war against crude oil theft, which impaired its dream of 2mb/d.

Last week, NNPCL said in the past week, 12 illegal pipeline connections and 50 illegal refineries were uncovered.

It said between 28th December and 3rd January, 2025, a total of 173 incidents were recorded across the Niger Delta region.

The records were through the joint efforts of the NNPCL Exploration and Production Ltd, NNPCL Command and Control Centre, Pipeline Infrastructure Ltd, Nigerian Liquefied Natural Gas, and Maton Engineering Ltd.

The Federal Government has announced 2.06 crude oil production benchmark for the 2025 budget that would require improved security on oil and gas assets to meet.

Nigeria expressed its eagerness to exceed the OPEC quota last year with Lokpobri urging the operators to intensify their efforts in that direction.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday said in November 2024, the country accomplished 99.04 per cent of its Organization of Petroleum Exporting Countries (OPEC) crude oil production quota of 1.5million barrels per day.

According to the commission’s November “Crude Oil Production 2024,” which The Nation obtained, in the review month, Nigeria hit 1.48mb/d of crude oil output.

The document said the country produced 204,828b/d condensate totally 1.69mb/d of crude oil and condensate in the month under review.

Recall that in October 2024, the crude oil and condensate output was 1.53mb/d.

The Nigerian National Petroleum Company Limited (NNPCL) had on November 14, announced the achievement of 1.8million barrels per day production of crude oil and condensate.

The company attributed the feat to the dedication of its  team work in the last weeks.

Owing to the announcement of the achievement, its  board chairman, Chief Pius Akinyelure yesterday charged the firm to hit 3mb/d in December 2024.

 Group Chief Executive Officer (GCEO), Malam Mele Kyari had directed the Production War Room Officer, Mr. Lawal Musa to present the data of the feat at the press briefing in Abuja.

Musa said “congratulations on exceeding 1.8mbopd ! This accomplishment reflects the dedication of all teams over the past weeks. Moving forward let’s build on this momentum and push towards our 2 MB/d by year end.”

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He said the NNPCL contributed 80 per cent of the production figure.

Kyari extolled the War Room team that recovered the nation’s oil production from its low level of 21st June, 2024.

He said that NNPCL will not only recover production, it will raise it to the expected level.

He said President Ahmed Tinubu has mandated the company to raise production to a level that is acceptable to the shareholders in the short and long term. 

Kyari insisted that it is possible to attain the 2mb/d with the support of the board, ministers, and security agencies.

Responding, Akinyelure commended the management team of the NNPCL on increasing production to 1.8mb/d.

He said he was elated due to the economic impact the production would have on the company’s cash flow of operating income from now to year end.

Akinyelure urged the state-owned oil firm to consider the 1.8mb/d as a base of the landmarks it should improve on.

• As oil production dips by 600,000 Bpd in September

The Organisation of the Petroleum Exporting Countries (OPEC), yesterday cut its forecast for growth in oil demand for 2024 and 2025. In its monthly report, OPEC said it cut its forecast for demand growth in 2024 by 106,000 barrels a day to 1.9 million barrels a day (mbpd).

OPEC cited “actual data received, combined with slightly lower expectations for some regions.” The organisation also lowered its forecast for 2025 by 102,000 barrels a day to 1.6 mbpd. That puts OPEC’s estimate for 2024 oil demand at 104.14 mbpd in 2024, down from 104.24 in its September report. Demand for 2025 is seen at 105.78 mbpd, down from 105.99 mbpd.

Meanwhile OPEC’s crude oil production slumped by 604,000 barrels per day (bpd) in September compared to August, as Libya’s output was largely halted amid a political standoff and Iraq moved to improve compliance with the OPEC+ cuts.

All 12 OPEC producers pumped on average 26.04 million bpd of crude last month, down by 604,000 bpd from August, due to a 410,000 bpd plunge in Libyan output, OPEC’s Monthly Oil Market Report (MOMR) showed yesterday.

Libya, which is exempted from the OPEC+ agreement, saw its average production slump to 540,000 bpd in September, which was more than halved compared to the 1.2 million bpd the country was producing before the month-long crisis that began at the end of August. Libya’s production resumed in early October and has now rebounded to 1.3 million bpd.

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Output in Iraq, OPEC’s second-largest producer, fell by 155,000 bpd to 4.112 million bpd, per OPEC’s secondary sources in the report. However, that’s still more than 100,000 bpd higher compared to Iraq’s pledge to keep output capped at around 4 million bpd. Saudi Arabia, OPEC’s top producer, continued to keep its promise to have output at around 9 million bpd. In September, the Kingdom’s crude oil production averaged 8.971 million bpd, down by 23,000 bpd from August. Iran, exempted from the OPEC+ cuts due to the U.S. sanctions on its oil industry, saw its production rise by 21,000 bpd to an average of 3.316 million bpd, according to OPEC’s the secondary sources such as consultancies. Among the non-OPEC producers part of the OPEC+ agreement, crude oil production averaged 14.06 million bpd in September, up by 47,000 bpd compared to August. Oil output increased mainly in Kazakhstan, while production in Russia decreased. Kazakhstan’s production rose by 75,000 bpd to 1.545 million bpd in September, per the secondary sources. Iraq and non-OPEC producers Russia and Kazakhstan have continuously vowed they would fall in line and compensate for previous overproduction by September 2025. Oil futures were lower ahead of the report, with analysts citing disappointment over a lack of detailed stimulus measures from China over the weekend.

The Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobri has confirmed that Nigeria is in conformity with the oil production quota of the Organization of Petroleum Exporting Countries (OPEC).

OPEC set 1.5 million barrels per day production quota for Nigeria in October 2024.

He said the declaration at the 56th Meeting of the Joint Ministerial Monitoring Committee (JMMC) of the organization.

The declaration was contained in his X handle. Said he: “I can confidently confirm that our country is in conformity with the agreed production limits.”

He added that even as the country is determined to increase its crude oil production, it will do so within the framework of the organization’s guidelines.

 “While we continue to ramp up production in line with our national interests, we are doing so within the framework of OPEC’s guidelines,” Lokpobri said.

The minister said Nigeria reviewed the conformity and compensation efforts of countries participating in the Declaration of Cooperation (DoC).

Lokpobri said the country is still committed to balancing responsible production with its economic goals, and continue to meet its obligations under the DoC.

Meanwhile, OPEC has set Nigeria’s crude oil production quota for October 2024 at 1.5 million barrels per day (bpd).

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This quota, established during OPEC’s meetings, is part of a broader production plan where total OPEC+ production is capped at 39.7 million bpd. Saudi Arabia leads with the largest share at 10.4 million bpd, followed by Russia at 9.9 million bpd

The Nation reported that in September 2024 that Nigeria’s Crude Oil and condensate production increased by 36,983barrels per day (bpd) from 1.53million per day (mod) in July 2024 to hit 1.57million barrels per day (mb/d) in August 2024.

The Nigerian Upstream Petroleum Regulatory Authority (NUPRC) disclosed this in its “Crude Oil and Condensate Production – August 2024,” report.

It said in the month, the country produced 1.3 mb/d of crude oil, 55,300b/d of blended condensate, and 163,693b/d unblended Condensate, totally 1.57mb/d.

Nigeria’s Crude Oil output in June this year was 1.5mb/d; May 1.4mb/d; April 1.4mb/d; March 1.43mb/d; February 1.53m/d; and 1.64mb/d in January.