The Nigerian National Petroleum Corporation (NNPC), on Wednesday, said it will continue to abide by the output cut agreement of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies aimed at stabilising the global oil market.
Nigeria’s compliance with the OPEC+ production cut agreement though essential as it is the best step towards redeeming the value of hydrocarbon resources at the global market in the interest of all, it, however will impact on government’s revenue.
He said the country would instead, focus on gas, condensate and other revenue streams to tackle the revenue challenge arising from the OPEC+ production cut arrangement.
Speaking on the topic, “Outlook for Africa/Nigeria’s Oil & Gas Sector in Post-Covid Era,” he expressed hope that by the end of the year demand for crude oil would pick up with the marginal increase in output.
According to him, gas has proven to be a steady and reliable revenue stream during the height of the COVID-19 pandemic in 2020.
The GMD added that gas production and utilisation would remain a key priority for the Corporation in 2021.
Earlier in his presentation, the Minister of Energy & Agriculture, United Arab Emirates (UAE), H.E. Eng. Suhail Mohamed Al Mazrouei, appealed to all oil-producing nations not to flood the market with crude oil.
He said the UAE was at the moment more concerned about balancing the market forces of demand and supply in the global market than growing market share.
In a recent OPEC+ meeting where members struggled to agree to a deal, Saudi Arabia had announced a voluntary production cut of an extra 1 million barrels per day throughout February and March.
A move Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman was targeted at supporting his country’s economy and that of other members of OPEC+.
[Also Read] OPEC, allies agree on 500,000bpd oil cuts
He said, “We do that with the purpose of supporting our economy, the economies of our colleagues in OPEC+ countries, to support the industry,”
By Peace Obi