• Monday, March 04, 2024
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Crude oil pricing, production, key for revenue generation in Nigeria, Says new NNPC boss

Crude oil

The newly appointed Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari,  has said crude oil pricing and volume of production are key factors in ensuring sustainable revenue generation for the country.

Kyari, said this in Vienna, while addressing journalists on the sidelines of the 176th Meeting of the OPEC Conference.

The new NNPC boss, who is Nigeria’s OPEC National Representative, was represented at the meeting by Bala Wunti.

Furthermore, Kyari assured the global audience that Nigeria would continue to support the declaration of cooperation that has helped in restoring stability in the global oil market.

“Through the Declaration of Cooperation, greater stability is restored globally. Nigeria believes that having the right price and volume can support our aspiration and ensure a sustainable revenue generation,” he said.

According to Kyari, a continuation of the declaration was the way to go.  He said a six-month extension was too short a time and would not have the required impact in curbing uncertainty and volatility which existed before the cooperation

“So a nine-month extension is the way to go, considering the objective of the declaration, that is why Nigeria supports the initiative and is also  grateful that big nations are committed to it,” Kyari said

He further expressed the commitment of the NNPC in revamping refineries, noting that in-country refining of crude through multiple channels and collaboration would ensure the nation becomes a major petroleum product exporter by 2020.

“Nigeria’s objective at today and tomorrow’s OPEC is to support the declaration of cooperation that has so far succeeded in the restoration of global oil markets stability.”

Meanwhile, OPEC has  approved in principle a nine-month rollover of its output cut agreement at the same levels, two sources told S&P Global Platts, as the producer group seeks to shore up prices in the face of flagging demand growth.

The deal now must be approved by OPEC’s 10 non-OPEC partners, including Russia.

Russia’s energy minister, Alexander Novak, has already endorsed a nine-month extension of the cuts, which expired Sunday.

The 24-country OPEC/non-OPEC coalition had agreed in December to a 1.2 million b/d supply cut accord that ran through the first half of 2019. Tepid demand growth forecasts and surging US oil production has kept a lid on prices, prompting the producer bloc to discuss an extension.

However, a charter that would have made permanent OPEC’s market management alliance with its non-OPEC partners has been taken off the table for now, due to Iran’s objection that OPEC was allowing too much influence to producers who are not bound by the organization’s bylaws and commitments.

“Further consultations are needed,” one source said.

Also Monday, OPEC approved another three-year term for Secretary-General Mohammed Barkindo, two sources said.

Barkindo, who has held the post since summer 2016, has shepherded the producer group through two and a half years of output cuts and has made a mark for himself with his international diplomacy.

The secretary-general serves as OPEC’s public face and spokesman, as well as overseeing the organization’s secretariat in Vienna.

 

Olusola Bello