Timi Sylva
Oil & Gas

OPEC/NON-OPEC ministerial summit: Sylva raises hope of crude oil prices increase by at least $15 per barrel

440

 

…price rebound may give Nigeria additional revenues of about $2.8 billion

… cuts supply by up to ten (10) million barrels per day May-June 2020 among members

… Nigeria now to produce 1.412 million barrels per day as against 1.579

The Minister of State for Petroleum Resources, Chief Timipre Sylva, has expressed optimism that crude oil prices would soon rebound by at least $15 per barrel following OPEC+ counterparts’ historic curtailment of crude oil production at their April 9 ministerial meeting.

He said the intervention would also help to “rebalance and stabilize the global oil markets’’.

Sylva said this in a statement in Abuja on Friday on the fall-out of the 9th OPEC/NON-OPEC  declaration of cooperation ministerial meeting to curtail crude oil production up to 10 million barrels.

He said: “Nigeria joined OPEC+ to cut supply by up to Ten (10) Million Barrels per day between May and June 2020, Eight (8) Million Barrels per day between July and December 2020 and Six (6) million barrels per day from January 2021 to April 2022, respectively.

“Based on reference production of Nigeria of October 2018 of 1.829 million barrels per day of dry crude oil, Nigeria will now be producing 1.412 million barrels per day, 1.495 million barrels per day and 1.579 million barrels per day respectively for the corresponding periods in the agreement.

“It is expected that this historic intervention when concluded will see crude oil prices rebound by at least $15 per barrel in the short term, thereby enhancing the prospect of exceeding Nigeria’s adjusted budget estimate that is currently rebased at $30 per barrel and crude oil production of 1.7 million barrels per day.

“The price rebound may translate to additional revenues of not less than $2.8 billion for the Federation.

“Nigeria has joined other OPEC+ counterparts in a historic curtailment of crude oil production to rebalance and stabilize the global oil markets.

“Nigeria is participating in the pursuit of our commitment to the framework of the Declaration of Cooperation entered on 10th December 2016 and further endorsed in subsequent meetings as well as the Charter of Cooperation signed in July 2019.’’

Sylva, however, said condensate production of between 360-460 KBOPD were exempted from OPEC curtailment.

“The agreement awaits close out of ongoing engagement with Mexico to agree on its full participation.’’

The minister said despite the production curtailments that the historic agreement would entail, all planned industry development projects would continue.

“It is therefore pleasing to note that despite the production curtailments that this historic agreement will entail, all planned industry development projects will progress as they will be delivered after the termination of the 9th OPEC/Non-OPEC Ministerial Meeting Agreement on adjustments in April 2022.’’

Related Articles

Reduction of petrol pump price: It’s bush telegraph, says NNPCL’s spokesman, Soneye

The Nigerian National Petroleum Company Limited (NNPCL) has denied reports making the...

Transparency, Research, Innovation Driving NNPC Ltd.’s Transformation – EVP Gas, Power, & New Energy

The Executive Vice President, Gas, Power, and New Energy of the Nigerian...

NNPC Ltd. will use gas to trigger Nigeria’s industrialization, economic development – EVP Upstream, Eyesan

The Nigerian National Petroleum Company (NNPC) Ltd. has reiterated its commitment to...

Kyari calls for differentiated energy transition for Africa

As global calls for transition to cleaner energy fuels continue to grow,...

Tinubu signs three executive orders to incentivize nation’s oil and gas projects

President Bola Tinubu has signed three new executive orders in the oil...

Tantita, NSCDC, destroy illegal large oil store in riverine area of Ondo State

The Nigerian Security and Civil Defence Corps (NSCDC) and Tantita Security Services...

NNPC Ltd, OPEC pledge collaboration to attract investments, grow production

The Nigerian National Petroleum Company Limited (NNPCL) and the Organization of the...

Port Harcourt refinery to start producing 2.2m litres of diesel, petrol daily soon – FG

The Federal Government has announced that the Port-Harcourt Refinery is gearing up...

NNPCL GCEO Kyari Hinges Wealth Creation on Energy Security

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited...

Nigeria’s oil exports rose by 60.8% in Q3 of 2023 – OPEC

The Organisation of Petroleum Exporting Countries (OPEC) has disclosed that oil exports...

NNPCL, CBN partner for seamless banking operations

In their bid to foster transparency and seamless commercial operations, the Nigerian...

NNPCL hits another milestone with 14,000 bpd production from Akpo West Field

The Nigerian National Petroleum Company Limited (NNPCL) has commenced oil production from...

Queues at Abuja filling stations a local problem, will vanish soon, says NNPC GMD

Petrol queues in Lagos: NNPCL allays fear of scarcity, blames queues on resolved distribution issue

The Nigerian National Petroleum Company Limited (NNPCL) says the long queues in...

Climate Change: NNPCL partners U.S. govt, Deloitte to reduce greenhouse gas emissions from OML 34

Africa’s biggest oil company, the Nigerian National Petroleum Company Limited (NNPCL), is...

Resolve litigation on $1.3bn Malabu OML 245 deal, Pres. Tinubu orders AGF, Lokpobiri, others

President Bola Tinubu has given a marshing order to the Attorney-General of...

Bouyed by Pres. Tinubu’s economic policies, NNPC Ltd. woos South Korean investors for gas projects

Driven by the need to expand the scope of its Liquified Natural...

FG expedites talks with Morocco on Nigeria-Morocco gas pipeline project

Nigeria and the Kingdom of Morocco are intensifying discussions to fast-track the...

NNPCL records 214 oil theft cases in one week in Niger Delta

The Nigerian National Petroleum Company Ltd. (NNPCL) says it has recorded at...