Amid expectations from the Organization of Petroleum Exporting Countries, OPEC, ordering members to freeze oil production, at its meeting yesterday, the Minister of State, Petroleum Resources, Dr. Ibe Kachikwu, has pleaded for an exemption for Nigeria.
He explained that Nigeria was still struggling to get back on its production strength of 1.7 million barrels per day and facilities repairs. Speaking at an interview with Bloomberg, Kachikwu, stated that given the current challenges bedevilling the sector such plans would be unfair for the country’s productivity. He said: “Frankly, given what we are faced with in Nigeria in the last 11 to 12 months, we have lost literally between 500,000 and 700, 000 barrels per day on an average. It is very unrealistic to expect Nigeria to make more sacrifices. We will expect to be one of those people to be granted an exemption.”
The minister maintained that possible discourse would be geared towards production cut rather than a freeze, saying, “this is because freezing at current levels is still fairly high and would not make serious impact in terms of the market. “There have been some arguments that when you have an unwillingly partnership as it is right now, you first do what is possible which is creating a freeze which is a softer module and then you progress to cuts. “But the realistic situation is that unless you have a realistic cut, you are not going to have much of an impact in terms of pricing.” Read more