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UPDATE 1-Nigeria says will cut output to conform to OPEC pact

Published 01/10/2019, 12:20
Updated 01/10/2019, 12:30
© Reuters.  UPDATE 1-Nigeria says will cut output to conform to OPEC pact

(Adds more comments, details, background)

FUJAIRAH, United Arab Emirates, Oct 1 (Reuters) - Nigeria

will make cuts to its crude oil output to comply with OPEC

output targets, Mele Kolo Kyari of the Nigerian National

Petroleum Company (NNPC) said on Tuesday.

Nigeria's September crude oil and condensate output was

2.1-2.2 million barrels per day (bpd), the director of its state

oil company said on Tuesday.

"We will (cut) across the assets. The OPEC quota (is) on

crude production only, not on condensate, so it doesn't affect

the condensate," he told reporters at a conference in Fujairah

in the United Arab Emirates.

"Our non-conformity is clearly on the crude, and it's not

significant so when you spread it across all the assets it will

not be a shock."

Kyari added that Nigeria hoped to raise oil production to

about 3 million bpd in the next 2 to 3 years.

The 14-nation Organization of the Petroleum Exporting

Countries (OPEC) agreed in December with non-OPEC partners

including Russia to reduce supply by 1.2 million bpd from the

start of this year.

OPEC's share of the cut is 800,000 bpd, to be delivered by

11 members, with exemptions for Iran, Libya and Venezuela.

According to a Reuters survey published on Monday, Nigeria

had pumped beyond its quota by 265,000 bpd in September, more

than any other OPEC state. Iraq, Congo, Ecuador and Gabon had also over-produced but by

much smaller margins, the survey found. Nigeria is also discussing potential investment

opportunities with Saudi Aramco and ADNOC of the United Arab

Emirates in Nigeria, and discussing potential gasoline supply

with Aramco trading.

The NNPC was exploring the possibility of ADNOC investing in

mid-stream pipelines and refineries in Nigeria, Kyari said.

“We are talking to (Aramco Trading) ... We are looking at

all opportunities and they are quite keen to supply gasoline to

West Africa", he added.

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