Home > Chemical News

Chemical News

Africa: Nigeria ready to back any OPEC moves to stabilize oil market:NNPC

https://www.chemnet.com   Mar 10,2011 Platts
Nigeria is ready to support OPEC in stabilizing the international oil market following the turmoil in the Middle East and North Africa that has caused global crude prices to spiral upwards, state-owned Nigerian National Petroleum Corporation said Wednesday.

The political violence in Libya has cut its oil output by as much as two thirds.

"Although OPEC has not called an emergency meeting, but Nigeria being a faithful member of OPEC, we will support and stand by OPEC for market stability," NNPC spokesman Levi Ajuonuma told Platts.

"Nigeria has not increased its oil production neither has OPEC told members to increase production. No, we have not got to that level yet. But we will be ready to increase production if called upon," Ajuonuma said.

Nigeria has been able to steady its oil production at around 2.4 million b/d over the last two months after years of unrest in the main oil-producing region, the Niger Delta, cut its output to around 1.0 million b/d from a capacity of 3.2 million b/d.

The NNPC spokesman said Nigeria had the extra capacity to meet any OPEC call for an increase in production.

"You know since the Federal Government amnesty program, our oil production has been increasing rapidly, we are bringing on more fields that were abandoned during the crisis," Ajuonuma said.

Attacks on oil production facilities have subsided since the government began implementing an amnesty program for militants in 2009, allowing oil workers to return to sites and repair facilities.

Shell shut down the 225,000 b/d Bonga deepwater field for inspection and maintenance on February 28. But sources said the closure, expected to last for six weeks, would not affect the company's export programs.

"The Bonga field maintenance is scheduled for six weeks or thereabout. However, there will be no impact on deliveries and meeting export commitments because the exercise was already scheduled," a company source said.

The field was producing 184,000 b/d before it was shut down.

OPEC has not changed its production ceiling for more than two years.

Saudi Arabia on Tuesday offered to help make up for Libya's shut output, estimated at about 1 million b/d of its normal 1.6 million b/d.

 Print  |    add to Favorites  |    Close