Nigeria Gives Conditions For Support Of OPEC Cut Extension
Nigeria appears to be in dilemma on whether to support oil production cuts or not.
The supply cut agreement was entered by members of the Organization of the Petroleum Exporting Countries (OPEC) to help raise oil prices.
The deal seemed to have worked as oil prices have peaked to its highest levels since 2015.
Nigeria and Libya were initially exempted from joining the cuts because of the attacks on their oil facilities which reduced their production output below average.
There is a plan to extend the supply cuts to sustain the price rise gain and that is a decision Nigeria is struggling to make considering the recent threat by militants to start attacking oil production facilities again.
That is why Nigeria's Minister of State for Petroleum Resources, Ibe Kachikwu, has said that Nigeria would support an extension of a deal between OPEC, Russia and other non-members to cut oil supply until the end of 2018 "as long as the right terms are on the table".
"There isn't any reason to change what is a winning formula," Ibe Kachikwu told Reuters, adding "there is a consensus to extend. The issue will be the duration".
OPEC and non-OPEC members will meet in Vienna, Austria later this month to discuss whether to extend that deal.
Nigeria's output has rebounded since its exemption, granted last year after militant attacks that cut its output to close to 1 million bpd, but Kachikwu said the recovery was ongoing.
"We'll be looking for a number that enables us to contribute ... It's in the range of 1.8 to 1.9 (million bpd), preferably closer to 1.9," he said of the production cap.
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