OPEC reductions for Nigerian crude oil

OPEC reductions for Nigerian crude oil

Editorial Staff
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The African country, initially exempt from the agreement signed by producer countries for a reduction in crude oil production, will limit its output to 1.8 million barrels per day until March 2018. Meanwhile, the Abuja Oil Minister, Kachikwu, announces the launch of a new energy development policy

Nigeria will also be called upon to contribute to the cuts in oil production decided by OPEC. It was announced by the Secretary of the Organization of Productive Countries, Mohammed Barkindo, at the margins of the fourth meeting of the Joint Ministerial Committee in St. Petersburg. Initially, the African country had been exempted from the application of the agreement, along with Libya, while part of the Organization, due to the internal situation of the country that had caused crude oil production problems. Barkindo himself stated that Abuja will limit its output to 1.8 million barrels per day until the end of March 2018. In any case, this is an easier condition comparing the one to which other oil producers have been subjected so far, which set the ceiling to 1.2 million barrels per day to bring the total cartel output to 32.5 million barrels per day in the first six months of 2017. On May 25, OPEC- NonOPEC for the reduction of oil production had been extended until March 2018. Meanwhile, Nigerian Oil Minister Emmanuel Ibe Kachikwu declared the intention of the Abuja Government to remove all obstacles in order to promote the growth of Oil&gas production activities and bring new investment into the industry. A substantial document elaborated by the Ministry outlines a new development policy for the national energy sector. According to Mr. Idang Alibi, Ministry spokesman, the document "establishes the medium to long-term targets for oil reserves growth, utilisation and strategies to be pursued to ensure the successful implementation of the policy in accordance with Nigeria’s national socio-economic development priorities.” The new plan is intended to address the governance of the sector, including the main components of the policy, comprising legal and regulatory framework; industry structure, with proposal for establishment of a new National Oil Company of Nigeria (NOCN) and restructuring of NNPC into autonomous business units.