Nigeria’s Minister of State for Petroleum Resources, Mr. Timipre Silva, and OPEC Secretary General, Muhammad Sanusi Barkindo.
Abasifreke Effiong
Nigerian government says it has joined other Organisation of Petroleum Exporting Countries, OPEC+ to curtail crude oil production.
Nigeria’s Minister of of State for Petroleum Resources, Mr. Timipre Silva, stated this in Abuja on Friday, said the curtailment of crude oil production is to help rebalance and stabilize the global oil markets.
Nigeria and other OPEC+ will cut crude oil supply 10 million barrels per day between May and June 2020.
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Crude oil price has slumped to an all-time low of $15 per barrel following the outbreak of Coronavirus which caused the closure of factories across the globe.
Silva said Nigeria will now produce 1.412 million barrels per day based on the curtailment agreement reached with OPEC+.
“Nigeria has joined other OPEC+ counterparts in a historic curtailment of crude oil production to rebalance and stabilize the global oil markets.”
“Nigeria joined OPEC+ to cut supply by up to Ten (10) Million Barrels per day between May and June 2020, Eight (8) Million Barrels per day between July and December 2020 and Six (6) Million barrels per day from January 2021 to April 2022, respectively.”
“Based on reference production of Nigeria of October 2018 of 1.829 Million Barrels per day of dry crude oil, Nigeria will now be producing 1.412 Million Barrels per day, 1.495 Million Barrels per day and 1.579 Million Barrels per day respectively for the corresponding periods in the agreement.”
The minister said the intervention when concluded will see crude oil prices rebound by at least $15 per barrel in the short term, thereby enhancing the prospect of exceeding Nigeria’s adjusted budget estimate that is currently rebased at $30 per barrel and crude oil production of 1.7 million barrels per day.
The price rebound may translate to additional revenues of not less than $2.8 billion dollars for the country.
Despite the production curtailments, Silva said all planned industry development projects will progress as they will be delivered after the termination of the 9th OPEC/Non-OPEC Ministerial Meeting Agreement on adjustments in April 2020.
