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HomeProduction Adjustments: Nigeria Restates Commitment to OPEC, Non-OPEC Agreement

Production Adjustments: Nigeria Restates Commitment to OPEC, Non-OPEC Agreement

Nigeria has reaffirmed its unwavering commitment to production adjustments agreed upon under the Declaration of Cooperation (DoC) between member countries of the Organization of the Petroleum Exporting Countries (OPEC) and Non-OPEC Countries at the last Ministerial Meeting of what is known as OPEC Plus, held on July 2, 2019, Vienna, Austria.

Nigeria’s Representatives on the OPEC Economic Commission Board and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, made this known in a statement issued in Abuja. 

According to the statement signed by the OPEC Representative, Nigeria is totally committed to full compliance with the agreement reached by the parties to the DoC.

“Right now we are not only committed to the agreement but we have elevated our attitude towards it to the point of complete devotion to the adjustments and we urge other parties to follow suit,” the OPEC Rep stated. 

Kyari expressed strong optimism that the momentary and artificially induced bearish trends would naturally correct itself based on the strong market fundamentals which have remained steadfast despite the price slid.

He enthused that with a visible steady decline in commercial stock overhang propelled by healthy demand, it is only logical for all advocates of oil price stability like the OPEC Plus allies to comply strictly with the agreed production adjustments.

He concluded that with the increasing volatility of the oil market, it has become commonsensical for Nigeria and all other parties to the agreement to entrench an attitude of unwavering devotion to the deal anchored on full and timely conformity to their obligations.

Meanwhile, the Corporation and the National Oil Spill Detection and Response Agency (NOSDRA) have expressed their willingness to work closer aimed at mitigating the incidences of oil spill across the country.

Mallam Mele Kyari, made this known when he received the Director General of NOSDRA, Mr. Idris Musa, along with his management team at the NNPC Towers in Abuja, recently.

Mallam Kyari stated that as a National Oil Company, the NNPC pipelines, flow stations and assets spread across the country were jointly owned by the Federation.

He maintained that the Corporation produces crude oil to maintain a balance sheet for the nation.

He noted that the NNPC had taken several steps to deploy technology to stem incidences of oil spill.

“We have taken a number of steps to stem oil spill by deploying technology in order to make sure that whenever there is an oil spill incidence, it is contained almost immediately. We contain the incidences of oil theft, pipeline vandalism and acts of saboteurs and we intend to bring it to the barest minimum,” Mallam Kyari asserted.

He averred that the NNPC operated both crude oil and petroleum products pipelines adding that the Corporation was collaborating with all its partners to curb incidences of oil spill in all areas of its operations.

The NNPC helmsman said the Corporation would also forge closer ties with NOSDRA to proactively forestall oil spill in areas that are prone to incessant incidences.

Earlier, the Director General of NOSDRA, Mr. Musa, said the Agency was prepared to partner the NNPC in mitigating oil spill in all areas of its oerations stressing that the partnership would ensure a good operating environment for the operators and the inhabitants.

He added that breaking of petroleum products pipelines did not provide food, water and good environment for the people rather the malaise bleeds the national purse of revenues that would have being used to provide developmental infrastructure for the various tiers of government.