GOOD NEWS AS OPEC GRANTS NIGERIA PRODUCTION CUT EXEMPTION, AS OIL PRICE APPRECIATES

At last a ground-breaking deal reached by Organisation of the Petroleum Exporting Countries (OPEC) after the organisation’s 171^st meeting which took place at the headquarters in Vienna on November 30 2016. It was unanimously agreed during the meeting that oil production should be reduced by about 1.2 million barrels, which represents around 4.5% per day.

In a press statement delivered by Idang Alibi, Director, Press Ministry of Petroleum Resources, stated that the agreement was a follow up to an earlier summit held in September in Algeria where each member state reached a compromise on the need to cut production.

According to the statement “it will be the first time since 2008, that OPEC would be accomplishing such a feat which is expected to tackle the key challenge of low price of oil in the international market which has affected the global economy with most OPEC member countries including Nigeria feeling the impact.”

Although, it was also agreed that some exemptions be given be given to countries like Iran, Libya, and Nigeria to increase their production in 2017.

For example, in the case of Nigeria, the exemption was given as result of the destruction of some of the Oil and Gas platforms destroyed by the Niger Delta militants.

Nigerian delegation at the conference was headed by the Honourable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu. The special treatment to Nigeria was due to the numerous industry has been going through in the hands of militants.

Thus, the prospects of the industry would be improved, as the impact was felt on Wednesday when the price of crude oil increased by over 8 percent in London, reaching $51.84 per barrel.

More so, a steady rise in the price of crude oil which happens to be one of the advantages of agreement is going to bring about economic emancipation to member states, of which Nigeria is included.

Accordingly, Saudi Arabia have said they are going to reduce their production by 486,000 barrel per day, while persuading Iraq to also cut theirs, as well as Russia which is a non-OPEC country to cut theirs by 300,000 barrel per day.

This milestone treaty is coming at a period when Dr. Ibe Kachikwu, the Honourable Minister of State for Petroleum Resources is working tirelessly with Ministers from other OPEC member countries and Nigeria’s Dr. Mohammed Sanusi Barkindo as the Secretary General of the Organization, to steer the organization to achieve and sustain unity and competitiveness in the global energy market.