The 2nd Meeting of the Organisation of Petroleum Exporting Countries, OPEC and non-OPEC oil producing countries which ended
on Thursday in Vienna, Austria, has resolved to extend the agreement reached at their first meeting in December 2016 to cut global crude oil production in order to rebalance 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 rebalance market fundamentals.
The Ministers commended all participating countries to the agreement for the unprecedented compliance displayed 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.
The Conference also agreed to extend the special consideration given to Nigeria and Libya from participation in the production cut.
This 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.
Minister of State for Petroleum Resources, and head of Nigeria’s delegation to the OPEC Conference Dr. Emmanuel Ibe Kachikwu 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,” Kachikwu said.
This optimism is informed by his belief that the Nigerian oil industry under his guidance is on course to achieving the objectives of the 7BIGWINS, which will see to the major overhaul of the industry including ramping up local crude production.
In a related development, 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.
Responding, Minister Novak assured Dr. Kachikwu 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. Novak extended an invitation to Dr. Kachikwu to visit Russia during the next Gas Exporting Countries Forum Ministerial Meeting, scheduled for next October, where further talks on the matter can take place.
In a related development, the Minister of Mines, Industry and Energy of the Republic of Equatorial Guinea, Gabriel Mbaga Obiang Lima has lauded Nigeria’s role in the recent admittance of the Country into OPEC membership.
Obiang Lima stated that “in one of the most critical moments of our oil history, Nigeria through its Minister Dr. Ibe Kachikwu stood by our side and showed itself to be a true friend and partner.”
He further stated that “Equatorial Guinea will always remember with gratitude and affection how Nigeria offered us support on our OPEC application and extraordinary assistance along with our African Brothers.”
Meanwhile, OPEC has announced the appointment of Nigeria’s National Representative to the Organization, Olusegun Adekunle as the Alternate Chairman of the 127th OPEC Economic Commission Board. Dr. Kachikwu expressed delight at the development while congratulating Adekunle and urging him to continue to work hard to justify the appointment and make Nigeria proud.