[dropcap]T[/dropcap]he federal government will support a cap on its oil production, minister of state for petroleum, Ibe Kachikwu, said Wednesday.
The production cap would come into play when Nigeria can stably pump 1.8 million barrels a day, the minister disclosed.
That’s 100,000 barrels more than it’s currently producing.
Nigeria and Libya were exempted from cuts agreed to by OPEC and other large producers in an effort to trim a global glut. OPEC decided that month to reduce its output by 1.2 million barrels a day to 32.5 million starting Jan. 1. Other producers including Russia joined the deal, which was extended through March 2018.
Libya and Nigeria may be asked to cap their output soon in an effort to help re-balance the market, Kuwaiti Oil Minister Issam Almarzooq said Monday at a conference in Istanbul.
OPEC wants an “orderly recovery” in oil production from Libya, Nigeria and Iran and has a flexible output target under its cuts agreement to accommodate more crude from the three member nations, the group’s Secretary-General Mohammad Barkindo said.