Skip to main content

President Buhari bows to Saudi-led OPEC’s pressure, agrees to cut oil output



Oredola Adeola |

President Muhammadu Buhari has finally bowed to pressure by the Saudi Arabia-led Organisation of Petroleum Exporting Countries, OPEC, Nigeria to cut oil output being part of efforts to eliminate excess supply, caps a turbulent week for OPEC that started with a decision by Qatar to leave the cartel.



Nigeria as one of the 14-nation OPEC group and 10 other producer countries are working hard to drain oversupply in the oil market, while Saudi Arabia delivered the biggest cuts.

Before now  Nigeria and Iraq have been pumping more than 100,000 bpd above their quotas. The country was exempted from the last round of output curbs and it also overshot its cap by 107,000 in January.

Nigeria’s crude oil daily production recorded an upward swing of about 2.09million barrels in 2018, translating to a 9 per cent increment, compared with the 2017 average daily production of 1.86million barrels.

 President Buhari made pledge for output cut when he received Mr. Ahmad Qattan, Minister of State for African Affairs and Special Envoy of King Salman Bin Abdulaziz, Custodian of the Two Holy Mosques and King of Saudi Arabia, at the State House, Abuja on Wednesday.

 He however promised OPEC, the cooperation of Nigeria to the effort to reduce oil output in order to attract higher prices in the global market.



According to him, as a responsible member of the Organisation of Petroleum Exporting Countries, OPEC, Nigeria was willing to go along with the Saudi initiative in limiting output so that prices would go up.

The President said output cuts had always been difficult for Nigeria considering the country’s peculiar circumstances of large population, huge expanse of land and state of under-development, adding, “I wish we can produce more.”

He, however, said: “I have listened carefully to the message. I will speak with the Minister of State Petroleum. I will call for the latest production figures. I know that it is in our interest to listen. We will cooperate.”

President Buhari explained that higher oil prices will make both nations stronger and their citizens more prosperous.

He commended King Salman for his leadership in global oil matters, assuring that Nigeria will continue to accord respect to the Kingdom in that regard.

The Special Envoy in his reaction delivered the special greetings from King Salman and the Crown Prince, extending their best wishes for Nigeria as the country goes into general elections.

Mr Qattan said the important reason for which King Salman sent him was to make a request to President Buhari to ensure Nigeria’s compliance with quotas assigned in January by exiting previous exemption from output cuts.

He said his country had reduced its own output by 1.4 million barrels per day to ensure that prices went up, stressing however, that Saudi Arabia alone cannot bring stability to the oil market and shore up prices.

The Special Envoy called for greater adherence to production cuts by Nigeria and hoped that he would take a positive message back home.

Comments

Post a Comment

Popular posts from this blog

Ogun State Governor to conduct groundbreaking for reconstruction of Lagos Toll-Gate-Sango-Abeokuta expressway on Friday Aug 23

..as Craneburg continues interim repairs on Ilepa , Bosun , Pakoto, Ifo, Ewekoro, Itori, and Obada area Oredola Adeola Relief is in sight for motorists on the Lagos-Ota-Abeokuta Expressway, as Craneburg, the contracting firm, has commenced the much-anticipated reconstruction of the heavily trafficked route. The official groundbreaking ceremony for the project is scheduled for Friday, August 23, and will be led by Ogun State Governor, Prince Dapo Abiodun. The Contractor , Craneburg Construction Company Ltd, began mobilizing its equipment to the site about 10 days ago, initiating palliative measures on one side of the road to ensure it remains passable while full-scale reconstruction commences on the opposite side. The interim repairs, which have already been carried out, span the Sango-Ota, Ilepa , Bosun , Pakoto, Ifo, Ewekoro, Itori, and Obada areas, with stone bases laid on the most deteriorated sections to ease the burden of travel during the construction period. The expressway
Post a Comment
Read more

Rosatom's TVEL, AllWeld Nuclear, industrial agree to cooperate nuclear backend area

Allen Atwiine, Uganda  The TVEL JSC, Managing Company of Rosatom's Fuel Division, and AllWeld Nuclear and Industrial, a South African firm, have signed a Memorandum of Cooperation which is focused on decommissioning and radioactive waste (RW) management at nuclear facilities in South Africa. The memorandum was signed by the party during the African Energy Week (AEW) 2024 in Cape Town on Tuesday.  The Editorials gathered that the Memoradium outlined a framework for cooperation and the implementation of joint initiatives.  Our correspondent gathered that the document was signed by Eduard Nikitin, Director for Decommissioning and RW Management at TVEL JSC, and Mervyn Fischer, CEO of AllWeld Nuclear and Industrial. Nikitin explained that the memorandum outlined plans for collaborative efforts in scientific, technical, and commercial activities related to the decommissioning of nuclear power plants and other facilities that pose nuclear and radiation hazards. He said, "The key aspe
Post a Comment
Read more

Lagos Assembly mulls Ambode's impeachment

Members of the Lagos State House of Assembly have commenced an impeach move against Governor Akinwunmi Ambode , alleging him of  gross misconduct. Speaker LHA Rt.Hon. Obasa and Governor Ambode  The lawmakers who discussed the issue at the plenary session on Monday, however gave the state Governor a one-week ultimatum to appear before them to defend allegations of misconduct and infractions levelled against him. Advertisement They vowed to proceed with the impeachment process at the expiration of the ultimatum.
Post a Comment
Read more