By Obas Esiedesa
WITH Nigeria’s oil production restricted to 1.74 million barrels per day by the Organization of the Petroleum Exporting Countries, OPEC, the Nigerian National Petroleum Corporation (NNPC) says it will focus on increasing gas and condensate productions to boost revenue for the country.
The Corporation’s Group Managing Director, Mallam Mele Kyari who disclosed this on Wednesday while speaking at the ongoing virtual Gulf Intelligence “Global” UAE Energy Forum 2021, reiterated Nigeria’s commitment to abide by the output cut agreement of the OPEC and its allies aimed at stabilizing the global oil market.
A statement by the NNPC’s Spokesman, Dr. Kennie Obateru said Kyari explained that despite the negative effects of the production cut on government revenue, it was the best step towards redeeming the value of hydrocarbon resources at the global market in the interest of all.
Kyari who spoke on the topic, “Outlook for Africa/Nigeria’s Oil & Gas Sector in Post-Covid Era”, said NNPC was hopeful that by the end of the year demand for crude oil would pick up and there would be a marginal increase in output.
He stressed that the Corporation was focusing more on gas, condensate and other revenue streams to tackle the revenue challenge arising from the OPEC+ production cut arrangement.
According to him, gas proved to be a steady and reliable revenue stream during the height of the Covid-19 pandemic in 2020.
The NNPC boss added that gas production and utilization would remain a key priority for the Corporation in 2021.
Earlier, the Minister of Energy & Agriculture, United Arab Emirates (UAE), Eng. Suhail Mohamed Al Mazrouei, in his remarks, appealed to all oil producing nations not to flood the market with crude oil.
He said the UAE was at the moment more concerned about balancing the market forces of demand and supply in the global market than growing market share.