The Nation (Nigeria)
1.554mb/d OPEC quota won’t affect Nigeria, says Sylva
WITH the allocation of 1.544 million barrel per day (mbpd) June quota short of its 2.5 mbpd daily production capacity, Nigeria will not be losing so much, Minister of State for Petroleum Resources, Timipre Sylva, has said.
He said the government was not losing at the prevailing output quota because it is better than when prices crude dipped due to COVID-19 outbreak.
When the pandemic took a toll on oil prices, according to him, Nigeria was selling below cost price and paying to evacuate the crude oil from the sea.
The minister, who spoke in Abuja yesterday during a press conference on Nigeria and OPEC 50 Years of Partnership, also hinted of plans to extend the West African Gas Pipeline to Morocco and Europe.
The Organisation of Petroleum Exporting Countries (OPEC) and its members have been locked in disagreement over what the next quota should be.
Sylva explained that all the member countries but one, have agreed to a new output figure. “Yet, there must be a consensus and not majority vote to move on”, the minister said.
He, however, said the deadlocked meeting has not caused any crack in the organisation's family, adding that prices have not declined “perilously because the global market is recovering nicely”.
The minister said: “The outlook is that there will be a requirement of about six million barrels for the rest of the year.
“So, if you look at it because the market still demands lot from us producers whatever we are doing in OPEC has not affected the market as such. The prices are still within the range that we are happy with.
“Meanwhile, we, as OPEC members, are still working to ensure that when we meet next time, we will be able to resolve our problems and move on.”
He described what the discordant country disagreed with as a minor issue that the organisation will soon resolve.
Sylva said: “The June quota is 1.554 million barrels per day. That is for crude oil, not including condensate. The last meeting was deadlocked in a way. That doesn't indicate a crack in the OPEC family. Everybody must agree before we move forward. And as it is now, we are not really losing much.”