Nigeria’s deputy Minister of Petroleum Emmanuel Ibeh Kachikwu ,has on Wednesday at a World Press conference in Abuja expressed cautious optimism that Nigeria would meet Organisation of Petroleum Exporting Countires,OPEC’s 1.8 million target for the Crude oil within three months,arising from measure of stability in Nigeria’s Oil rich Niger Delta.
Kachikwu said Nigeria would work to achieve this through working with key stakeholders in the Oil and Gas sector for the stability of global market price as Nigeria is currently producing 1.7 million barrel of crude oil,with prospects of reaching 1.8 million OPEC cuts targets.
On Possible impact on the budget,Kachikwu said,”In terms of budget impact of course,it would have impact because we hinged production on 2.2 million barrels of oil per day,and the price benchmark on $42.50. So,within the price cap, we are still reasonably within range. There is definitely going to be differentials.Certain projects may have to be affected.If we don’t have money,we cannot do certain projects.But the government would work hard to address any forseable impact.
He informed further OPEC’s crude oil cuts in hinged on stabilising the volatility of the market while stating further that price stability is achieved when the price is put at $55 and $60 per barrel.
“$60 in the upper level and $55 in the lower level.Certanily when it goes below $50 there is a bit of worry and concern.We are in the in the concern zone,and we need to get to he normalcy zone”he said.
Speaking further,Kachikwu explained that the 171st meeting of the OPEC Conference held in November 2016 exempted Nigeria and Libya from production management agreement reached, following production losses the two OPEC Member Countries suffered in recent times in their respective operational environments.
He added that the 172nd meeting of the Conference held in May 2017 in Vienna, also decided to extend the November agreement and the exemption of Nigeria and Libya, stressing however that since the May meeting, Global Oil Prices have been bearish, with Crude Oil Prices falling from USD 51.24 to USD 44.79 as at 11th July, 2017.
He largely attributed the developments to a number of factors including increasing shale production in the United States, recovery in oil production in Libya and Nigeria as well as slower Global Economic Growth than earlier anticipated.
He notes further that while Nigeria recognised the recovery of its oil production in recent weeks, the upsurges remained fragile, assuring that Nigeria will continue to monitor developments.
Kachikwu confirmed receiving invitation to the next Joint Ministerial Monitoring Committee Meeting of the OPEC and Non-OPEC Accord Countries, scheduled to take place in St Petersburg, Moscow, on 24th July, 2017, but regretted his inability to attend because of a prior commitment to host Ministers of Petroleum of the African Petroleum Producers’ Organisation countries on the same day in Abuja.
Kachikwu assured that Nigeria remained steadfast in its commitment to global oil market stability as it has done in the last forty six (46) years as a member of OPEC and would always be part of the action taken by other OPEC member countries and contribute its quota once its productions status stabilizes.
HARRISON EDEH, ABUJA
