Kachikwu Admits It Will Be Hard For Nigeria To Cut Oil Production
Global oil group, the Organisation of Petroleum Exporting Countries, OPEC is currently meeting in Vienna to decide on keeping or discarding its production cuts agreement.
Ahead of that meeting, Nigeria’s minister of state for petroleum resources spoke with Bloomberg where he confessed that Nigeria is not ready to join the production cuts.
The production cuts have helped oil prices as it warded off oil supply glut and propped up prices.
Kachikwu, who spoke on ‘Bloomberg Daybreak: Europe’ on Thursday ahead of the OPEC meeting in Vienna, said there was a need for an extension of production cuts to stabilise the global oil market.
The production cuts deal, which began on January 1, 2017, indicated that OPEC countries and 10 non-OPEC producers led by Russia would cut a combined 1.8 million barrels per day in supplies to tackle oversupply and prop up prices. It was later extended till the end of 2018.
Nigeria and Libya were exempted from the cuts as they dealt with internal unrest that had targeted their oil infrastructure.
Asked if Nigeria would be able to reduce production, Kachikwu said, “It is very difficult to do that but where we are now, everybody must be seen to contribute. Obviously, the smaller it is, the more amenable we are to participate; the larger it is, the more we will struggle to participate.
“We have got exemption three times understandably. This time round, I think there is a decision that everybody should be seen to chip in.”
According to the minister, Nigeria’s oil production is currently around 1.73 million to 1.74 million barrels per day.
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