Kyari thumbs-up OPEC decision on Production cut

Nigeria is in support of the Organization of the Petroleum Exporting Countries (OPEC)’s decision to extend production cuts to 2020, OPEC National Representative in Africa’s largest oil producer, Mele Kyari, said  on Monday.

The incoming Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, voiced his support for continued co-operation between OPEC and its non-OPEC allies, paving the way for the coalition of producer countries to extend their production cut agreement.

Kyari who was represented by the corporation’s Group General Manager, Corporate Planning and Strategy, Mr. Bala Wunti, said the support came “voluntarily” on the recognition of the transformational impact the ‘Declaration of Cooperation’ has had on the global oil market, and reaffirms “strong support” for the Declaration.

OPEC’s decision to extend cut by nine months is largely driven by support from Saudi Arabia and Russia, with the hopes that the extension would help stem global crude prices.

Kyari said that 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.”

Kyari working in collaboration with other members of the Joint Technical Committee and OPEC Economic Board, had worked relentlessly to provide compelling support base to ensure Nigeria achieve optimal quota allocation that will support government revenue target and also achieve President Muhammadu Buhari’s vision for the oil and gas industry.

Permanent Secretary of the Ministry of Petroleum, Dr. Folashade Yemi-Esan, who led the Nigerian delegation at the 176th Meeting of the OPEC in Vienna, Austria, said “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, she said.