OPEC+ has lowered Nigeria's crude oil production target for 2024 from the previous target of 1.74 million barrels per day to 1.5 million barrels per day.
The move comes as the group of oil producing countries seeks to control supply and demand in the global oil market.
Nigeria, Africa's largest oil producer, has struggled to meet production quotas in recent years due to lack of investment and security concerns. But the country's output has increased in recent months, helped by increased production overseas.
OPEC+ also lowered Angola's oil production target for 2024 to 1.11 million barrels per day from the previous target of 1.28 million barrels per day. Congo's 2024 targets are largely in line with what was agreed in June.
The new production target could be revised at the next OPEC+ meeting scheduled for December.
Nigeria could reach 1.5 million barrels per day of oil production next year barring major disruptions, but the chances of achieving this are slim as most of Nigeria's oil fields are mature and declining. It seems low.
James Forbes, an analyst at FGE, noted that Nigeria's peak crude oil production this year is hovering around 1.51 million barrels per day, and that achieving these goals will require optimal operations at all fields. However, he emphasized that this is an unlikely scenario given the maturity and declining trend of the country's oil fields.
