Following Nigeria’s exemption from the production cut agreed on by oil cartel, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, says the country has however been cautioned to be disciplined and not flood global markets with crude oil.
Speaking with Bloomberg on the sidelines of the 173rd meeting of the Organisation of Petroleum Exporting Countries, OPEC conference holding in Vienna, he disclosed that Nigeria had resisted the word “cut” in crude production.
Kachikwu said, “We’ve been asked to be disciplined, the word cut has not been used. We’ve resisted the word cut. The word cap has been accepted by me a long time ago.
“Clearly, there is a continuing obligation to ensure that we do not just flood the market because of the exemptions we were given.
“There’s a lot more energy around bringing everybody to the ball park, Nigeria is willing to be in that ballpark and contribute.
“Our contribution is fairly limited because we are still lacking yet in that capacity to reach the marks anywhere soon.”
He went on to disclose that Nigeria’s current production is around 1.75 million barrels per day, stressing that the 1.8 million barrels benchmark is comfortable.
His words, “Our current production is 1.75, we are still below the 1.8 that was the benchmark which is comfortable but you’re going to see a lot more pressure as we go into next year
“Sometime late next year, we will probably see the capacity of Nigeria to do close to 2.3, 2.5.
“Can we do it? Probably not if we all keep to discipline. We are now going to be looking at producers within our country and those giving us barrels at the least cost price because we are going to cut scientifically those who are unable to produce below a certain benchmark.”