OPEC-Nigeria Talks Key to Oil Cut Compliance, COVID-19 Market Recovery
One of the major gains of the Organisation of Petrol Exporting Countries (OPEC)-Nigeria bilateral meeting last week is the signal of the strong dialogue and cooperation between the global petroleum body and Africa’s biggest producing oil producing country.
Such dialogue is reputed to be key for compliance with the OPEC global production cuts deal of April, to which all of OPEC’s African member countries have agreed to. Nigeria’s support to global market stability and energy cooperation is significant and gives confidence to operators and future investors seeking to do business in West Africa, report said.
“African producers and service companies are the hardest hit when there is volatility in the market. H.E. Mohammed Sanusi Barkindo and Dr Ayed S. Al-Qahtani leading these discussions sent a strong message that collaboration and sticking to the principles of a stable market is good for Nigeria, its producers and the economy at large,” the Petroleum Africa report quoted NJ Ayuk, Executive Chairman at the African Energy Chamber
“We continue to support the government of Nigeria and the country’s ministry of petroleum resources in their effort to improve the environment for investment and getting the industry to rebound post-Covid-19. We believe they are right in making this a priority and we welcome the bold initiatives by Nigeria’s leadership,” he stated.
The medium noted that Nigeria’s ongoing Marginal Fields Bidding Round was launched earlier this year and has already been met with significant success, reportedly attracting hundreds of bidders.
The round is expected to result in a new wave of local content development in Nigeria, a country already widely regarded as the most successful example of local content and capacity building across the continent.
By Chibisi Ohakah, Abuja