Economic Sabotage: Nigeria’s Oil Output Still Hovers Around 1.5mpd – Kachikwu

Related stories

Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit

By Abiola Olawale President Bola Ahmed Tinubu departed Saint Lucia...

2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour Party

By Abiola Olawale In a dramatic turn of events, Barrister...

FG Secures $100m for Lagos-Calabar Project from ECOWAS Bank

By Abiola Olawale The Nigerian government has reportedly secured a...

Ex- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UK

By Abiola Olawale The Metropolitan Police have formally charged former...

Edwin Cortes: Prefers Being A Small Puerto Rican Than Big American

By Owei Lakemfa To be a citizen of the United...

Following the destruction of several oil and gas infrastructures by militants leading to unrest and economy sabotage, Nigeria’s daily oil output still hovers around 1.5 million barrels, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has revealed.

The New Diplomat gathered this in an interview Kachikwu had with Bloomberg as he reacted to the likely thrust of meeting of the Organisation of the Petroleum Exporting Countries, OPEC, in Vienna, Austria.

Kachikwu said Nigeria was still suffering the consequences of petroleum pipeline vandalism, but stated that the nation was in support of a nine-month extension of the OPEC production cut, which is on the agenda at the meeting in Vienna.

Nigeria’s current output of about 1.5 million barrels per day, mbd, is a far cry from a peak of 2.6mbd and the 2.2mbd the country has produced in the last few years.

Ahead of the Vienna meeting, oil market analysts and industry experts had expect the group to extend the agreement it reached at last November’s meeting, trimming output by about 1.8 million barrels a day.

The agreement, which got the backing of non-OPEC oil producers, including Russia, brought OPECs production down to32.5 million barrels per day.

Russia and some other non-OPEC producers would also be part of the Vienna meeting. 

Analysts polled by Bloomberg agreed that the OPEC ministers will, at the meeting, prolong the curbs, but they were divided on whether the extension will last for six or nine months and were also at odds over the probability of the cuts rebalancing the market.

 “They don’t have much of a choice other than to extend the cuts,” Kim Brady, senior managing director at SOLIC Capital in Evanston, Illinois, said. “They have said they will do whatever needs to be done to balance the market. They haven’t quite achieved that yet.”

Among OPEC members, Saudi Arabia, Nigeria, Iran, Qatar, Venezuela and Kuwait all favour an extension of the cut.

Saudi Arabia and Russia, the world’s top two oil producers, at a meeting few days ago agreed on the need to extend output cuts for nine months until March 2018 to erode a glut. That would be longer than the optional six-month extension earlier proposed by producers.

“This statement shows the commitment by OPEC and major non-OPEC oil producers to bringing stability to the oil market, in which is essential to have the security of supply in coming years,” a source at the meeting said.

Iran is also in favour of a proposal to extend the OPEC and non-OPEC supply cut for nine months, describing it as a positive idea.

Kuwait, a Gulf producer usually aligned with the Saudi OPEC view, said on Tuesday it supported the proposal.

Qatar’s energy minister said the country was optimistic that extending the global oil supply cut beyond June would improve market stability, and that there was merit in continuing the curbs through March 2018.

“We are optimistic that the extension of the agreement to the second half of this year will improve market stability, due to the higher expected demand in Q3 and Q4. This is further supported by the fact that the world economic situation is progressively improving,” Mohammad al-Sada said in a statement.

“We also see merits of extending the agreement further to the first quarter of 2018, when the demand is seasonally lower.”

Sada said a number of oil producers had shown support in recent days for extending the agreement, and that the process of rebalancing supply and demand “is finally gaining momentum” after almost three years of gains in oil inventories.

Hamilton Nwosa
Hamilton Nwosa
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour PartyFG Secures $100m for Lagos-Calabar Project from ECOWAS BankEx- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UKEdwin Cortes: Prefers Being A Small Puerto Rican Than Big AmericanJune 12 And The International Pursuit of Justice For Abiola, By Femi FalanaBreaking Down the West’s $146 Billion 2024 Defence Technology InvestmentG7 vs. the World: GDP, Population, and Military StrengthUS drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61
X whatsapp