Price, revenue essential for development — GMD, NNPC
By Udeme Akpan
Ministry of Petroleum Resources, MPR, and Nigerian National Petroleum Corporation, NNPC, have embarked on measures targeted at stabilising output at 2.3 million barrels per day, bpd, to generate adequate funds for development.
In an interview with Vanguard at the just concluded Nigeria Oil and Gas Conference and Exhibition, NOG, in Abuja, a source in the MPR, who preferred not to be named because he was not permitted to speak, said: “The MPR and NNPC have agreed that there is a great need to maintain a minimum output of 2.3 million bpd, including condensates as stated in the nation’s 2019 budget.
“We have also up scaled assets as well as provided adequate security backup to protect strategic oil and gas producing facilities that are essential to enabling us realise set target. Although, pipeline vandalism and oil theft cannot be completely ruled out in the Niger Delta, the government should be able to stabilise output and by extension revenue.”
Meanwhile, a look at the volatile oil market showed that Bonny Light, Nigeria’s premium oil grade, rose from $64.00 to $65.07 per barrel, Friday, as Organisation of Petroleum Exporting Countries, OPEC, and others continue to eliminate excess oil from the market.
Speaking at the sidelines of the just concluded OPEC meeting in Vienna, Austria, the newly appointed Group Managing Director of the NNPC, Mr Mele Kyari, said crude oil pricing and volume of production were key factors in ensuring sustainable revenue generation for the country.
He had said: “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.
“So, a nine-month 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.
“Nigeria’s objective at today and tomorrow’s OPEC is to support the declaration of cooperation that has so far succeeded in restoration of global oil markets stability Further to this; Nigeria’s hope is to secure appropriate quota for it cause export and optimal price.”
Similarly, Nigeria has reaffirmed its strong support for the nine-month extension in oil production cut under the ‘’Declaration of Cooperation,” which seeks to improve global oil market stability among OPEC members.
Permanent Secretary, Ministry of Petroleum Resources, Dr. Folashade Yemi-Esan, said: ‘’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.”
She had added: “The convening of the 176th Meeting of the OPEC Conference and the 6th OPEC and non-OPEC Ministerial Meeting offer the Nigerian delegation the opportunity to reaffirm our strong support for the ‘Declaration of Cooperation.’
“When the ‘Declaration of Cooperation’ was first signed on 10 December 2016, participating countries recognized the uniquely challenging circumstances in Nigeria, particularly related to the security situation in producing regions of the Niger Delta, and graciously agreed to an exempt Nigeria from the voluntary production adjustments. Nigeria appreciates this act of solidarity and thanks all participating countries for their steadfast support during the challenging period.
“Following the 5th OPEC and non-OPEC Ministerial Meeting on 7 December 2018, Nigeria voluntarily agreed to re-commit to the collective endeavour to adhere to adjustments in production levels.”
We have also supported this undertaking by actively participating and engaging in the Joint Ministerial Monitoring Committee.
“We acknowledge and welcome the recent expression of commitment by the Kingdom of Saudi Arabia and the Russian Federation following the meeting of the G20 in Osaka, Japan, to continue the ‘Declaration of Cooperation’ for a further nine months. Nigeria strongly endorses this commendable commitment and supports 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.
“With presidential elections over and the re-elections of President Muhammadu Buhari, Nigeria will intensify efforts to ensure full conformity with the ‘letter and spirit’ of the ‘Declaration of Cooperation,’ despite the obvious domestic challenges this may pose. We will work to stabilize production by improving the security architecture of producing regions and through continued engagement with local communities, particularly in the Niger Delta region.”