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Nigeria agrees with 9 months extension for oil production cut


Nigeria has restated its strong support for the nine-month extension in oil production cut under the ‘’Declaration of Cooperation’’ which seeks to improve global oil market stability among OPEC members.

According to Vanguard, under the cooperation, OPEC member and non-member nations accelerated the stabilization of global oil market through voluntary production adjustments which amounted to 1.8 million barrels per day.

In a statement at a press conference in Vienna by the Head of the Nigerian Delegation to the 176th Meeting of OPEC, Dr Folashade Yemi-Esan welcomed the commitment by Saudi Arabia and Russia on the proposed extension. She said ‘’Nigeria strongly endorses this commendable commitment and supports this position, we believe that an extension of nine months is preferable to six months, as it offers greater certainty to the market, thereby reducing market volatility’’.

She further asserted that the nation recognized the transformational impact which the ‘’ declaration of Cooperation’’ has had on the global oil market with 24 oil producing countries working together and contributing to improved market stability.

Yemi Esan who is the Permanent Secretary of the Petroleum Resources ministry noted that the development had benefited consumers and producers as well as impacted positively on the health of the global economy. She expressed further that the nation is committed to the declaration saying that ‘’we will work to stabilise production by improving security in oil-producing regions through continued engagement with local communities’’.

Recall that the nation was exempted from the declaration in December 2016 when it was first signed owing to the security challenges in the Niger Delta at the time and difficulties in meeting up the voluntary production adjustment.

On his part, Mr Bala Wunti, representative of the newly appointed Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr Mele Kyari noted that pricing and volume of products remained key factors in ensuring sustainable revenue generation for the country.

He said “a six-month extension is too short a time and will not have the required impact in curbing uncertainty and volatility which existed before the cooperation’’ He further expressed the commitment of the NNPC in revamping refineries, noting that in-country refining of crude through multiple channels and collaboration would ensure the nation becomes a major petroleum product exporter by 2020.

According to him, the incoming NNPC boss was committed to making this happen.

Source Vanguard
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