• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      16 hrs

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      20 hrs

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Commodities

      LME contemplates permanent shutdown of historic trading ring

      3 hrs

      WORLD BUSINESS & ECONOMY

      China’s economy grows 2.3%, with potentials to overtake U.S. beyond expectations

      16 hrs

      WORLD BUSINESS & ECONOMY

      Uber leads with 30% as 10 biggest startup layoffs in 2020 reach 25,000

      17 hrs

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      17 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      17 hrs

      Frontpage

      Nigeria aims for cost efficiency, safety, value in oil sector with centre of excellence

      19 hrs

      Frontpage

      Sustainable energy: Minister estimates solution to cost Nigeria $4bn in annual spend

      21 hrs

      Frontpage

      NNPC receives $120.49m crude oil receipt in September  

      January 18, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Frontpage

Nigeria seen included in possible OPEC oil output cap

July 1, 20171.4K views0 comments

There are strong indications that the Organisation of Petroleum Exporting Countries (OPEC) may revisit the issue of including Nigeria in its output cap deal.

This followed Royal Dutch Shell lifting of its force majeure on exports of Bonny Light crude after pipeline repairs which is expected to lead to significant increase in Nigeria’s crude oil production.

OPEC had last year reached a deal that will limit oil production. The output freeze deal was in May this year extended by nine months.

The deal then excluded Nigeria which was still ramping up production. According to the OPEC secretariat, member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan, had then recognised the need for continuing cooperation among oil exporting countries in order to achieve a lasting stability in the oil market.

Read Also:

  • NNPC reaffirms commitment to OPEC+ agreement   
  • CBN issues guidelines for QR codes operation in Nigeria
  • Nigeria can generate 30,000MW of electricity by 2030, say GenCos
  • Nigeria’s railway e-ticketing platform launch set for next week
  • Reflections on interagency collaboration in security management in Nigeria

Royal Dutch Shell recently said it had lifted force majeure on exports of Bonny Light crude oil after pipeline repairs. Shell had imposed a force majeure on some exports from the Bonny Terminal early June due to a leak found in one of the two pipelines that serve the terminal.

The Trans Niger Pipeline, along with the Nembe Creek Trunk Line, is used by SPDC and some other producing companies to evacuate crude from the eastern Niger Delta to the export terminal.

“With the lifting of the force majeure on Bonny Light, Nigeria’s crude export will improve over the next few months from the 1.7 million barrels per day (bpd) reported for May (which we presume is exclusive of exports through Trans Forcados), as the export of the Bonny grade is set to reach 226,000bpd in August, up from 164,000bpd in July, according to the loading schedules,” analysts at Lagos-based CSL Stockbrokers Limited stated.

Incessant attacks on oil pipelines by militants in the Niger Delta had cut Nigeria’s oil production by around 800,000bpd at the peak of the attacks in 2016. There have been concerted efforts by the Presidency since last year to dialogue with the Niger Delta militants in order to raise Nigeria’s oil production level to the 2.2mbpd average daily production before the attacks began. On account of this, there has been no reported attack in 2017.

“OPEC’s battle against an oil glut is under threat following a partial production recovery from members Nigeria and Libya, which are exempt from a global production-cut deal. While increased production is positive for the economy in terms of higher revenues (assuming steady oil prices), a significant increase in production, may cause OPEC to revisit the issue of including Nigeria in the output cap deal,” CSL added in a note.


By Donatus Eleko

Share on Facebook Tweet Email
TagsNigeria OPEC
PreviousWorld coal production just had its biggest drop on record
NextUN discovers untapped 93,950MW energy sources in Nigeria

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Access Bank unfolds ambitious expansion into Africa, global markets leveraging HoldCo structure
  • Nigeria bourse chief pleads caution on 2021 growth expectations
  • Selloffs in BuaCem, Access, UBA push Nigeria bourse under waters
  • Shippers Association predicts shortfall in cargo imports as covid-19 bites harder
  • LME contemplates permanent shutdown of historic trading ring

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

African Reinsurance Corporation joins Africa Finance Corporation

Frontpage February 1, 2018

1
2

Osinbajo meets IMF, World Bank over economic stimulus

Frontpage April 22, 2020

3

Outlook for Nigerian stocks positive on improved economic data, earnings expectations

Frontpage August 1, 2017

4

NIRSAL de-risking mandate in shambles

Frontpage August 7, 2018

5

Global operators to invest $1.3trn in mobile Capex in seven years – Report

Frontpage September 24, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.