New Telegraph

Nigeria’ll meet OPEC quota by August – Sylva

The Minister of State for Petroleum, Timipre Sylva, has said that the Federal Government is committed to meeting its crude oil production quota by August, 2022. He said crude oil theft had reduced the country’s supply to the global market so far this year, as against its quota by the Organisation of Petroleum Exporting Countries (OPEC).

 

The minister, who spoke during a media conference, however, said that OPEC+ major members could not also meet the new capacity required to pump more and stop oil prices from soaring. Crude and condensate production in May decreased 1.279 million b/d, according to Nigerian Upstream Petroleum Regulatory Commission data.

 

He said Nigeria was working with Shell, Chevron, ExxonMobil and other producers to restore production facilities online to increase output. He said: “We have given ourselves just about a month to ensure that we achieve at least some measurable milestones.

The assurance I have from all the operators is that at least we can produce all of our OPEC quotas by the end of August. “For us in Nigeria, we are really at a low point, we are not able to meet our OPEC quota…

 

We have given ourselves a timeframe, we are focusing on security.

We believe that by end of August we would have seen some improvements in security in the oil sector.” According to Sylva, the reduction in Nigeria’s oil production was also caused by the oil wells that were shut in during the outbreak of the Covid-19 pandemic when global demand for crude dipped significantly, and the inability of the country to bring them back.

The minister said government had activated strategies to reactivate shut-in wells and increase output.

 

Sylva said OPEC may not increase Nigeria’s output quota when it meets in August on the grounds that the global market is well supplied.

 

He said: “I don’t think there will be surprises in OPEC in August. “Some people considered the prices to be a little bit on the high side and expect us to pump up a little bit more, but, at this moment, there is a really little additional capacity that can be brought to the market.”

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