OPEC Announces New Production Cuts, Appoints Libya, Nigeria as Chair in Board of Governors
By Ndubuisi Micheal Obineme
In an eventful 36th OPEC and non-OPEC Ministerial Meeting (ONOMM) convened on November 30, 2023, significant strides were made towards maintaining a stable and balanced oil market.
A notable highlight was the warm welcome extended to HE Alexandre Silveira de Oliveira, Minister of Mines and Energy of the Federative Republic of Brazil, as Brazil announced its forthcoming inclusion into the OPEC+ Charter of Cooperation, effective from January 2024.
Emphasizing a steadfast commitment to the Declaration of Cooperation (DoC), the Participating Countries reaffirmed their dedication to the framework established since its inception on December 10, 2016. This commitment has been consistently endorsed in subsequent meetings, notably at the 35th OPEC and Non-OPEC Ministerial Meeting on June 4, 2023, and further solidified through the Charter of Cooperation ratified on July 2, 2019.
The Meeting addressed crucial aspects, including the completion of assessments by independent sources (IHS, Wood Mackenzie, and Rystad Energy) on the projected production levels for Angola, Congo, and Nigeria in 2024. The assessments concluded production estimates at 1,110,000 barrels per day for Angola, 277,000 barrels per day for Congo, and 1,500,000 barrels per day for Nigeria, in alignment with prior decisions set forth during the 35th OPEC and non-OPEC Ministerial Meeting.
Looking ahead, the 37th OPEC and non-OPEC Ministerial Meeting is scheduled to take place on June 1, 2024, in Vienna.
In parallel, during the 187th meeting of the conference of OPEC members, crucial appointments were announced. His Excellency Minister Mohammmed Oun from Libya was appointed as the Chairman of the OPEC Board of Governors for the year 2024, accompanied by Ambassador Gabriel Aduda, OPEC Governor of Nigeria, who assumes the role of Alternate Chairman for the OPEC Board of Governors for the year 2024.
This gathering decisively dispelled speculations of discord among OPEC countries regarding the acceptance of their 2024 quotas, culminating in a successful outcome that is expected to fortify market dynamics, fostering stability and sustainable growth within the industry.