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OPEC extends Nigeria’s exemption from crude oil production cap

 

 

The Organisation of Petroleum Exporting Countries on Friday extended Nigeria’s exemption from crude oil production cap following the countries plea to be exempted until it stabilises its production.

The extension was at the  meeting  of  the  Joint  Ministerial  Monitoring  Committee  of  OPEC  and  Non  OPEC Countries which ended  in  Vienna  on  Friday  afternoon , according to a statement issued by Director of  Press  at the Ministry of Petroleum Resources, Mr. Idang Alibi.

Following glut in the international crude oil market, OPEC had required its members to cut down on their oil production quota in order to stabilise prices in the international oil market.

Exemption was granted to Nigeria because domestic crisis had prevented the nation from meeting its quota of 1.8 million barrels per day.  However, the situation had recently improved following negotiated peace in the Niger Delta oil producing region.

The exemption was first granted to Nigeria in the November 2016 Ministerial Conference and extended by the May Ministerial Conference. Nigeria, however, had been basing its budget for some years now on crude oil production of 2.2mbpd.

Minister of State for Petroleum Resources, Dr. Ibe  Kachikwu, who led  Nigeria’s  delegation  to  the  meeting  in Vienna had  argued  that  although  Nigeria’s production recovery efforts have made some appreciable progress since October 2016, Nigeria was not yet out of the woods.

He noted that even though Nigeria hit 1.802mbpd in the month of August, that was not enough justification for a call by some countries for Nigeria to be brought into the quota sealing.

Kachikwu  emphasised  that  Nigeria,  as  one  of  the  older  members  of  OPEC,  would continue  to  work  for  the  good  of  the  organisation  and  its  member  countries, respecting whatever agreements and resolutions that are collectively made.

He stated that Nigeria would be prepared to cap its crude production when it has stabilised at 1.8mbpd. Punch

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