Nigeria may lose the oil production exemption granted it and Libya by the Organisation of Petroleum Exporting Countries (OPEC) as a result of production disruptions, a source has said.
These disruptions were occasioned by attacks on infrastructure in the two countries.
Nigeria’s exemption may have to go because the peace moves of the Federal Government in the Niger-Delta region have started yielding dividends, as the militants have agreed to give peace a chance. Crude oil production has moved to about 1.8million barrels per day (bpd), according to government sources.
An oil industry stakeholder, who spoke on condition of anonymity, said Nigeria, has demonstrated strong resolve to settle its internal problems, as well as improving crude oil production greatly.
He said the country may by May 25 stop enjoying production exemption once it is able to stop violence perpetrated by militants and its resultant effects on oil production.
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, said OPEC is monitoring the exemptions granted Nigeria and Libya. He said the development became necessary, in order to determine the next line of action for the two countries.
Related posts:
OPEC extends Nigeria’s exemption from Oil Output cut
Forex Reserve: Nigeria raises $25B from oil production cut exemption
OPEC, non-OPEC members meet August 7 on production cut
OPEC cuts Nigeria’s oil production to 1.68m bpd in 2019
Nigeria to cut down on oil production to meet OPEC target-Timipre Sylva
Nigeria increased crude oil production to 1.42m barrels per day in February – OPEC
OPEC raises Nigeria’s oil production quota to 1.799mbpd
Nigeria’s crude oil production dropped in January – OPEC
