Good News As OPEC Exempts Nigeria, 2 Others From Reducing Oil Production
At a time Nigeria economy is battling economic recession, analysts have seen the move by the Organization of Petroleum Exporting Countries (OPEC), to exempt Nigeria, from cutting production output given the peculiar internal challenges they found themselves.
Pundits say the development is good for Nigeria especially now the global oil prices are closing in on $50USD.
Other two nations facing one form of internal crisis or the other to gain from the exemption include Iran and Libya. Both are currently facing serious internal crisis.
OPEC also agreed to commence the reduction of its members’ production output to about 740, 000 barrels per day in November 2016.
The daily production capacity of all members of the group at the moment stands at about 33.24 million barrels.
Due to the incessant bombardments of Nigeria’s oil installations by militant groups, experts and the Nigerian government are still finding difficult to give a clear figure of the current oil output.
Investigations however, show that the decision to cut production by the group would be the first time in eight years.
Nigeria, on Thursday last week, tied the resolution to the growing cohesion among member- countries, particularly its growing influence to help work harmoniously in identifying needs outsourcing in Mauritius, challenges and ways to resolve them.
The Minister of State for Petroleum, Dr Ibe Kachikwu, had, earlier last week, pleaded for an exemption for Nigeria on production freeze, explaining that Nigeria was struggling to get back on its production strength of 1.7 million barrels per day and facilities repairs.