- Discusses investments in Nigeria’s Oil Sector with Russia
The Honorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu has said that Nigeria should be able to reach optimal oil production figures before the end of the oil output cut declared recently by the Organization of the Petroleum Exporting Countries (OPEC) during the 2nd meeting of the OPEC and Non-OPEC oil producing countries held recently in Vienna,.
The Conference agreed to extend the special consideration given to Nigeria and Libya from participation in the production cut.
Following the resolution Kachikwu who and led Nigeria’s Delegation to the OPEC Conference, stated on the sidelines of the meeting that between the six to nine months’ window, all things being equal, Nigeria should get to the optimal production figures and will be willing to join any needed production cuts.
“Nigeria is not averse to production cuts as every responsible nation needs to make sacrifices to help price stability on a global basis”, he pointed out.
OPEC’s decision was taken despite speculation before the meeting that Nigeria was going to be made to participate in the production cut in view of the improvements it has recorded in oil production since the first agreement came into effect.
Indeed, a number of both OPEC and Non-OPEC countries had expressed their interest to see that Nigeria was brought into the fold.
He believes that the Nigerian oil industry under his guidance is on course to achieving the objectives of the 7 BIG WINS, which will see to the major overhaul of the industry including ramping up local crude production.
It can be recalled that there was a resolution to extend the agreement reached at their first meeting in December 2016 to cut global crude oil production in order to re-balance the oil market.
The Ministers agreed to extend the six months 1.8 million barrels per day production cut which took effect from January 1, 2017 by another nine months at the expiration of the current agreement period on June 30, 2017.
The decision to extend the production cut was taken in recognition of the positive impact the first agreement has made on the market in its first five months of implementation and also the fact that more needs to be done to re-balance market fundamentals.
The Ministers commended all participating countries to the agreement for the unprecedented compliance displayed by the countries, and called on them not to relent in their efforts to ensure that the instability that has characterized the oil market in recent years is minimized to the barest minimum.
Meanwhile, Dr. Kachikwu met with his Russian counterpart Alexander Novak where they explored areas of mutual interest in the oil industry to their countries.
Kachikwu had expressed Nigeria’s interest in having Russia and Russians come to participate in the growing oil sector of the country, pointing out that the reforms and processes being put in place which aims to enhance the investment climate in Nigeria, has recorded major achievements with the ongoing implementation of the 7 BigWins -Nigerian Petroleum Roadmap.
Novak assured that Russia is interested in participating in the Nigerian oil industry and would suggest that preliminary technical talks begin as soon as possible between the two countries.
Dr. Kachikwu is expected to visit Russia during the next Gas Exporting Countries Forum Ministerial Meeting, scheduled for next October, to further talks on the proposed collaborations.