Nigeria’s Minister of State for Petroleum, Chief Timipre Sylva has explained that the Federal government is determined to adhere to the resolutions agreed upon by both members of the Organization of Petroleum Exporting Countries (OPEC) and non-member countries of OPEC last Saturday to further extend the timelines for crude oil production cut.
It would be recalled that OPEC+ had resolved to cut down on daily global oil output by 9.7 million in sequential order. Energy experts believe that it was this novel move that led to massive recovery in global oil prices that had plummeted prior to the deal by OPEC+including the United States, Russia and Mexico.
In the light of the above, while explaining Nigeria’s resolve to comply with the global output cut, Chief Sylva, a former governor of Bayelsa State and leader of the ruling All Progressives Congress(APC) in the state said Nigeria is willing to comply with the OPEC+ resolution just reached.
According to Chief Sylva, even though the country could not fully implement the Oil output cut deal as she was only able to adhere to about 52% cut, the country is determined to follow through with resolutions reached by OPEC+ last Saturday.
In a statement issued by his Special Adviser on Media and Publicity, Mr. Garba Deen Mohammad, the former Governor of Bayelsa State who is very much at home with the dynamics in the Oil and Gas sector as he had worked previously as an Adviser in to a Minister of Petroleum Resources affirmed Nigeria’s readiness to follow through with the latest resolutions of OPEC+ on production cut.
Chief Sylva who urged understanding while enjoining all players to appreciate the significance of working collaboratively with all partners in a determined bid to restore normalcy to the global oil industry, especially in terms of glut in storage capabilities and global price crisis, maintained that the adverse effects of COVID-19 have been quite unhealthy.
He said: “Nigeria will continue collaborating with other OPEC+ nations in the historic efforts to adjust crude oil production towards rebalancing and stabilising the global crude oil market for the benefit of all.
“Nigeria reaffirms its commitment, alongside its OPEC+ counterparts to extend the first phase of the production adjustments of 9.7 mb/d by one month until the end of July 2020.
“Nigeria also subscribes to the concept of compensation by countries that are unable to attain full conformity (100 per cent) in May and June 2020 to compensate for it in July, August and September 2020.”
The Minister added: “We are in full alignment with the decision to closely monitor the market dynamics and it is our conviction that the current gradual recovery being witnessed will be sustained to full traction.
“We reiterate our resolve to conform with the decisions reached under the auspices of the 11th OPEC/Non-OPEC Declaration of Cooperation meeting.
“Nigeria appreciates the commitment of OPEC+ group under the able leadership of Saudi Arabia and Russia towards ensuring the success of this historic intervention”.
