By Oge Obi
The OPEC-Non-OPEC producing countries’ Joint Ministerial Monitoring Committee (JMMC) has stated that based on the report of its Joint Technical Committee (JTC) for the month of September 2017, OPEC and participating Non-OPEC producing countries have achieved a record high conformity of 120 per cent.
The September 2017 120 percent conformity level is the highest since the start of the voluntary production adjustment Declaration of Cooperation since January 2017. This again underscores the resolute commitment of participating producing countries to cooperate towards the rebalancing of the market.
The Nigerian government as part of its commitment towards achieving a rebalanced oil market has promised to cap its production as soon as its production hits the benchmark of 1.8 million barrels.
And speaking with journalists at the 24th Africa Oil Week in Cape Town, South Africa recently, the Minister for state Petroleum Resources, Dr. Ibe Kachikwu predicted Nigeria oil production hitting the 1.8 million barrels benchmark by the first quarter of 2018.
Limited earlier by unrest in the country’s oil-producing region, Nigeria was exempted from the production cap deal. But as the country’s production recovers, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu OPEC has restated Nigeria’s commitment to cap output at 1.8 million bpd.
Asked when Nigeria would reach the output level of 1.8 million barrels, the Minister said that Nigeria’s oil production has been hovering around the average of 1.6 and 1.7 million barrels. And that if a 300,000bd capacity Exxon Mobil’s field presently constrained resumes production in early January 2018, Nigeria was sure of hitting the1.8 million in the first quarter of the year. “If that succeeds in coming back early in January, then up, we will go. This month, we ended with an average of 1.7 million.
Speaking on what to expect from the OPEC’s Vienna meeting in November, the Minister said he expects the convergence of ideas and review of statistics. “The market is balancing fast through the obvious good efforts of OPEC but also through the happenstances of the market itself.”
Commending Saudi Arabia for its leading role in the market recovery process, urged other countries to emulate the oil giant’s selfless role in returning the global oil market to the path of recovery. Kachikwu who supported the extension of the cap deal, said it is necessary to firm up the attained results. “I think we need to keep it anyway; to continue to firm up the result. And Saudi Arabia has shown very strong leadership. And all of us have to follow that example, he said.
And for OPEC to sustain the success so far attained in dealing with the three-year oil glut, Kachikwu said, “We need to see more cuts” and to attain sustained improved oil price.
The next JMMC Meeting is scheduled to be held in Vienna, on 29 November 2017.