Nigeria See Consensus for an OPEC+ Output Extension

0
701

By Alonso Soto
Oil at a level that works for consumers, producers: Kachikwu
Nigeria will find it ‘a challenge’ to meet its curb obligation

The OPEC+ deal to curb oil production probably will be extended, “hopefully for another six months” beyond the end of June, Nigerian oil minister Emmanuel Kachikwu said.

The agreement has stabilized the oil market and easing the curbs could bring back excess supply, he told reporters at a conference in Malabo, Equatorial Guinea. However, Nigeria, which has pumped more crude than it pledged to under the deal, will find it challenging to implement its share of the cuts because of output from a new project called Egina, Kachikwu said.
The 173rd Organization Of Petroleum Exporting Countries (OPEC) Conference

Emmanuel Kachikwu.
Photographer: Akos Stiller/Bloomberg

The OPEC+ agreement has “been able to get prices to a point where both consumers and producers are at least a bit comfortable,” he said. “I would like to see that go on.”

The deal to reduce oil output by 1.2 million barrels a day, which helped crude rise by the most in a decade last quarter, expires at the end of June. While there’s general backing within the Organization of Petroleum Exporting Countries and its allies for an extension, Russia is said to remain undecided.

READ: OPEC’s Missing Meeting Shows Strain in Saudi-Russia Alliance

Nigeria actually boosted crude production by 90,000 barrels a day to 1.92 million last month, according to a Bloomberg survey. Kachikwu said the country is currently pumping about 1.7 million barrels a day. The country agreed to reduce output to 1.685 million barrels under the OPEC+ deal.

The Egina project, which started this year, will pump 150,000 barrels a day of crude at a peak rate but supply is “right now probably not there yet,” Kachikwu said.

The OPEC+ group’s compliance with the cuts will improve from about 90 percent in the months ahead, OPEC’s Secretary-General Mohammad Barkindo said at the same conference. He said Kachikwu has assured him the country is doing everything possible to meet its obligations.

A full meeting of ministers from OPEC and its allies is scheduled in June in Vienna.

SHARE
Previous article‘Tax reform, digitalisation key to financing Africa’s economic development’
Next articleNigeria’s external and domestic debt hits N24.3trillion
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

This site uses Akismet to reduce spam. Learn how your comment data is processed.