They decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended this month to July. Rig count is largely a reflection of the level of exploration, development and production activities occurring in the oil and gas sector. The slump in oil prices caused by the coronavirus pandemic has forced many companies, including international oil companies, operating in the Nigerian oil industry to slash their capital budgets and suspend some projects. That is despite sharp falls in LNG utilisation rates in other parts of the world, particularly in the US, while spot-exposed Egypt has halted LNG exports altogether. In the coming months, Nigeria’s oil output may fall as it moves to fully comply with its OPEC+ production quota.

Source: Punch June 20, 2020 23:03 UTC