Business Energy Oil & Gas Power & Energy

Oil market stability: Nigeria restates support for extension of oil production cut

Micheal Ajayi

Nigeria has confirmed the validity of his stand on the nine-month extension in the oil production cut under the “Declaration of Cooperation’’ which seeks to improve global oil market stability among OPEC members.

This was made known on Monday by the Head of the Nigerian Delegation to the 176th Meeting of OPEC, Dr Fokashade Yemi-Esan at a press conference in Vienna while welcoming the commitment by Saudi Arabia and Russia on the proposed extension.

She said that the nation recognised the transformational impact which the ‘’ declaration of Cooperation’’ has had on the global oil market with 24 oil producing countries working together and contributing to improved market stability.

“Nigeria strongly endorses this commendable commitment and support this position, we believe that an extension of nine months is preferable to six months, as it offers greater certainty to the market, thereby reducing market volatility’’

Yemi-Esan who is the Permanent Secretary of the Petroleum Resources ministry noted that the development had benefited consumers and producers as well as the impact positively on the health of the global economy.

She also expressed the nation’s commitment to the declaration saying that ‘’we will work to stabilise production by improving security in oil-producing regions through continued engagement with local communities’’.

According to her, the nation was excepted from the declaration in December 2016 when it was first signed owing to the security challenges in the Niger Delta at the time and difficulties in meeting up the voluntary production adjustment.

Furthermore The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr Mele Kyari noted that pricing and volume of products remained key factors in ensuring sustainable revenue generation for the country.

Represented by Mr Bala Wunti, NNPC boss stressed that the innovation will bring about a global stability.

Through the Declaration of Cooperation, greater stability is restored globally, Nigeria believes that having the right price and volume can support our aspiration and ensure a sustainable revenue generation’’

‘’We believe that continuation of the declaration is the way to go. A Six-month extension is too short a time and will not have the required impact in curbing uncertainty and volatility which existed before the cooperation.

‘’So a nine-month the extension is the way to go considering the objective of the declaration, that is why Nigeria supports the initiative and is also grateful that big nations are committed to it’’

Wunti further expressed the commitment of the NNPC in revamping refineries, noting that in-country refining of crude through multiple channels and collaboration would ensure the nation becomes a major petroleum product exporter by 2020.”

About the author

Ihesiulo Grace

Leave a Comment