Petroleum Africa
Find us on: 
Monday, April 13, 2020
On Easter Sunday, Africa’s OPEC members – Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, and Nigeria – joined its other OPEC+ counterparts by teleconference to negotiate a significant production cut. This meeting followed the April 9 meeting of OPEC+ and the April 10 discussion by G20 members aimed at bringing more oil off the market. The end result is an agreement to cut 9.7 million daily barrels of supply off the market.
The intervention of US president Donald Trump resulted in Mexico agreeing to a cut of 100,000 bopd. The original request of Mexico was 300-400,000 bopd which was not agreed to however, President Trump committed US producers and to scale back an additional 300,000 bopd. Trump said he would work out the details for Mexico to compensate in the future.
Russia and Saudi Arabia will absorb the bulk of the cuts, each agreeing to cut their production down to 8.5 million barrels per day. Saudi Arabia’s production stood at 12.3 million barrels per day, and Russia was producing 11.29 million barrels of oil per day in March.
On the deal, Daniel Yergin, Vice Chairman, IHS Markit commented, “what could not have been imagined is that Donald Trump, who has been a critic of OPEC for years, is the one who put it together. Of all the deals he’s done in his life, this has to be the biggest and most complex. He had to be not only dealmaker but also divorce mediator, after the OPEC-Plus relationship split up six weeks ago.”
“These production adjustments are historic. They are largest in volume and the longest in duration, as they are planned to last for two years. We are witnessing today the triumph of international cooperation and multilateralism which are the core of OPEC values,” said Secretary General of OPEC H.E. Mohammed Barkindo. Barkindo also noted that the OPEC+ deal paves the way for further collaboration with the G20.
In a statement, Nigeria’s Minister of State for Petroleum Resources, Hon. Chief Timipre Marlin Sylva, said he expects the oil price to rebound by $15 per barrel in a short-term outlook. “This also promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel,” he said in a statement.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
