Due to observed drop in oil theft, all things being equal and in view of rising crude oil production output in the country, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said that Nigeria will demand a higher oil production quota at the next meeting of the Organisation of Petroleum Exporting Countries (OPEC) scheduled for November.
Lokpobiri disclosed this on Tuesday in Abuja during an interview with the media team of the Nigerian Upstream Petroleum Regulatory Commission, where he reviewed Nigeria’s upstream oil performance four years after the enactment of the Petroleum Industry Act and the establishment of the Commission.
He said the country’s current quota, pegged at about 1.5 million barrels per day, no longer reflects its true production capacity.
According to him, the upcoming OPEC meeting provides an opportunity for Nigeria to make a strong case for an upward review to at least two million barrels per day.
“The OPEC quota is subject to periodic review, and by November, when we attend the annual meeting, we will certainly be making a case for a higher quota for Nigeria. And I believe that there’s no better time than now for us to make a strong case for Nigeria’s quota to be reviewed to two million and above,” the minister said.
He expressed confidence that Nigeria’s improved output levels, strengthened infrastructure, and renewed investments in the upstream sector would support the country’s case for an increase.
Lokpobiri said the sustained recovery in production, improved regulatory environment, and fresh inflow of investment into the oil and gas sector have positioned Nigeria to make a strong case for a higher OPEC quota.
“When I became minister, the OPEC quota for Nigeria was 1.5 million barrels per day because our production then was below that.
“Today, we are producing around 1.7 million barrels daily, including condensates, and we have the capacity to produce above two million barrels per day. It is time to review the quota upward,” he noted.
He explained that Nigeria’s actual output includes condensates, a lighter, higher-value form of crude not covered by OPEC’s production limits, adding that this gives the country flexibility without violating its quota.
“Condensate is not counted in OPEC production, yet it sells at a higher price,” he said. “If we do 1.5 million barrels of crude and one million barrels of condensate, we are still within the rules. And because we have capacity, we are also going to show that we have capacity. Right now, there is something going on to assess our capacity, and that assessment is currently going on. And we believe that we will show the world that we have the capacity to produce more than two million barrels.”
The minister added that verifiable production data, domestic crude supply obligations under the PIA, and evidence of renewed capacity would form part of Nigeria’s case at the OPEC meeting.
Lokpobiri attributed the production rebound to improved security and better pipeline integrity across the Niger Delta.
“Before now, companies were scared to produce because crude pumped into pipelines hardly got to the terminal,” he said. “Today, if you put in crude, you get 100 per cent at the export point.”
SOURCE: businesshilights.com.ng19
