This photo shows Shell's major oil and gas terminal on Bonny Island, in southern Nigeria's Niger Delta. (Xinhua File Photo)
Timipre Sylva, Nigeria's minister of petroleum resources, announced that the country has joined other Organization of the Petroleum Exporting Countries counterparts in a historic curtailment of crude oil production to rebalance and stabilize the global oil market.
Timipre Sylva, Nigeria's minister of petroleum resources, announced Friday that the country has joined other Organization of the Petroleum Exporting Countries (OPEC) counterparts in a historic curtailment of crude oil production to rebalance and stabilize the global oil market.
The minister, in a statement made available to Xinhua in Lagos, said the West African nation is participating in the pursuit of commitment to the framework of the declaration of cooperation entered on Dec.10, 2016 and further endorsed in subsequent meetings as well as the Charter of Cooperation signed in July 2019.
He said Nigeria is to cut supply by up to 10 million barrels per day between May and June 2020, 8 million barrels per day between July and December 2020 and 6 million barrels per day from January 2021 to April 2022, respectively.
Based on reference production of Nigeria of October 2018 of 1.829 million barrels per day of dry crude oil, the minister added that the nation will be producing 1.412 million barrels per day, 1.495 million barrels per day and 1.579 million barrels per day between May and June, July and December 2020 and January 2021 to April 2022, respectively.
It is expected that this historic intervention when concluded will see crude oil prices rebound by at least 15 U.S dollars per barrel in the short term, thereby enhancing the prospect of exceeding Nigeria's adjusted budget estimate that is currently rebased at 30 U.S. dollars per barrel and crude oil production of 1.7 million barrels per day, the minister said.
The price rebound may translate to additional revenues of not less than 2.8 billion dollars for the country, he added.
Editor:Cherie
