UPDATE 2-Nigeria to reach OPEC+ compliance by mid-July

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By Noah Browning
LONDON, June 10 (Reuters) - Nigeria did not fully comply
with a pact by oil producers to rein in output to balance
markets but will make additional cuts to make up for the lapse
by mid-July, the head of the Nigerian National Petroleum
Corporation Mele Kyari said on Wednesday.
Nigeria had exceeded its quota for production cuts under an
OPEC+ deal by a little less than 100,000 barrels per day (bpd)
in May, Kyari said in an online interview with Dubai-based
research firm Gulf Intelligence.
Africa's top oil exporter aims to reach full compliance by
"maximum, middle of July", Kyari said, adding the country will
by that point need to cut an additional 40,000-45,000 bpd in
order to compensate for its earlier over-production.
Kyari said there had been technical challenges to reining in
Nigeria's output but the country was fully committed to the
cuts.
The Organization of the Petroleum Exporting Countries,
Russia and other producers agreed in April to cut supply by 9.7
million barrels per day (bpd) in May and June to support prices
as coronavirus lockdowns caused demand to collapse.
The group, known as OPEC+, agreed on Saturday to sustain
those cuts, equal to about 10% of global supply, through July.
It also demanded countries such as Nigeria and Iraq, which
exceeded production quotas in May and June, compensate with
extra cuts in July to September.
In a webinar with Nigerian oil industry stakeholders later
on Wednesday, Kyari said that an oil price estimate of $27 per
barrel for Nigeria's revised budget could be on the low side as
prices are recovering from two-decade lows. "There's a hope and expectation that with all the
rebalancing that's going on we could reach $42-$45 before the
end of the year, which could compensate for the low prices in
March and April," he said.
Kyari said that Nigeria aimed to cap production costs at $10
a barrel by 2021 in order to remain competitive: "if you can't
do this, you walk away, this is not a business of subsidies."

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Oil prices https://tmsnrt.rs/2AlPNu2
Production costs https://tmsnrt.rs/2UvN7AN
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