Nigeria Will Consider Reducing Oil Output For Higher Prices – Buhari

Nigeria Will Consider Reducing Oil Output For Higher Prices – Buhari

 

President Muhammadu Buhari has pledged the cooperation of Nigeria to the effort to reduce oil output in order to attract higher prices in the global market.

The President made the promise on Wednesday when he received Mr Ahmad Qattan, Minister of State for African Affairs and Special Envoy of King Salman Bin Abdulaziz of Saudi Arabia.

He said as a responsible member of the Organisation of Petroleum Exporting Countries (OPEC), Nigeria was willing to go along with the Saudi initiative in limiting output so that prices would go up.

President Buhari noted that output cuts had always been difficult for Nigeria, considering the country’s peculiar circumstances of a large population, a huge expanse of land, and state of under-development.

READ ALSOMilitary, Police Investigate Photos Showing ‘Personnel’ Flashing Signs Of Support For Buhari

“I wish we can produce more,” he was quoted as saying in a statement by his Senior Special Assistant on Media and Publicity, Mr Garba Shehu.

The President added, “I have listened carefully to the message. I will speak with the Minister of State Petroleum. I will call for the latest production figures. I know that it is in our interest to listen. We will cooperate.”

 

He was hopeful that higher oil prices would make both nations stronger and their citizens more prosperous.

President Buhari commended King Salman for his leadership in global oil matters and assured him that Nigeria would continue to accord respect to the Kingdom in that regard.

Earlier, the special envoy told the President that he had brought special greetings from King Salman and the Crown Prince, as well as their best wishes for Nigeria as the country goes into general elections.

He said the important reason for which King Salman sent him was to make a request to President Buhari to ensure Nigeria’s compliance with quotas assigned in January by exiting previous exemption from output cuts.

Mr Qattan informed the President that his country had reduced its own output by 1.4 million barrels per day, to ensure that prices went up.

He, however, stressed that Saudi Arabia alone cannot bring stability to the oil market and shore up prices.

The Special Envoy called for greater adherence to production cuts by Nigeria and hoped that he would take a positive message back home.

OPEC Extends Nigeria’s Exemption From Oil Output Cut

The meeting of the joint ministerial monitoring committee of OPEC and non-OPEC countries ended in Vienna, today with the endorsement of further exemption for Nigeria’s crude oil production until it stabilises.

Nigeria’s Minister of State For Petroleum Resources, Dr Emmanuel Ibe Kachikwu, told the meeting that although the country’s production recovery efforts have made some appreciable progress since October last year, it is not yet out of the woods.

Dr kachikwu explained that Nigeria will be prepared to limit its crude production when the output stabilises at 1.8 million barrels per day.

The five-nation joint ministerial monitoring committee noted that overall compliance by OPEC and non-OPEC participating countries to the agreement on crude oil production cut for the month of August was 116 percent, the highest since the agreement came into effect on January this year.

OPEC Asks Nigeria, Libya To Maintain Current Oil Output

Nigeria and Libya have been asked to keep their current oil output levels, and they remain exempted from current cut-back agreement among Organisation of Petroleum Exporting Countries and non-OPEC producers.

This was decided at an emergency meeting of oil ministers from the OPEC and non-OPEC frontline producers like Russia today in St Petersburg, Russia aimed at discussing the state of the market and compliance with existing arrangements.

The meeting disclosed that compliance among members is currently around 95 percent with the agreed 1.8 million barrels per day in a deal already extended till March 2018.

Nigeria and Libya were exempted from the December 2016 cut back, which took effect in January, because of their struggles to restore production due to internal problems of damage to oil facilities.

Nigeria’s Oil Production Shows Further Strain

Oil ProductionNigeria’s oil production showed further signs of strain on Thursday as intruders blocked access to Exxon Mobil’s terminal exporting in Qua Iboe, the country’s largest crude stream.

Exxon Mobil said that the terminal continued to operate even as the intruders blocked staff from gaining access from early morning hours.

The incident is the latest in a string of attacks and other problems at the oil infrastructure in Africa’s largest crude producer.

Militant activity in the oil-rich Niger Delta has taken out some 500,000 barrels per day of crude oil production from other companies in Nigeria, pushing oil output in Africa’s largest-producing nation to more than 22-year lows.

Nigeria’s Oil Production Output Nears 22-Year Low

Oil OutputNigeria’s oil production output is set to fall to its lowest level in over two decades after Royal Dutch Shell’s local operation said it had shut a major pipeline.

Shell Petroleum Development Company declared force majeure on Bonny light crude exports on Tuesday, after closing the Nembe creek trunk line, which carries all the country’s crude, for repairs, after a leak.

The outage pushed oil futures higher, with benchmark brent crude trading 3.49% at 47 dollars 11 cents per barrel.

Nigeria was due to export around 217,000 barrels of Bonny light crude in June, from a total of 1.7 million barrels per day.

Nigeria’s oil output to increase by 180,000 bpd – Petroleum Minister

Diezani Alison-Madueke

Africa’s largest oil-producer is set to produce even more black gold a Reuters report stated.

Nigeria, which is currently producing some 2.5 million barrels per day (bpd) of combined crude oil and condensate will soon increase its output by 180,000 bpd, petroleum minister Mrs. Diezani Alison-Madueke said.

According to the petroleum minister oil refineries utilisation capacity is set to increase to 90 percent in the next two years after maintenance is carried out by the original construction companies, Reuters reported.