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Crude Oil Pricing, Production, Key For Revenue Generation In Nigeria, Says Mele Kyari


The newly appointed Group Managing Director, GMD, of the Nigeria National Petroleum Corporation, NNPC, Mele Kyari, on Monday (today) said crude oil pricing and volume of production are key factors in ensuring sustainable revenue generation for the country. 

Kyari, said this in Vienna, while addressing journalists on the sidelines of the 176th Meeting of the OPEC Conference.

The new NNPC boss, who is Nigeria's OPEC National Representative was represented at the meeting by Bala Wunti.

Furthermore, Kyari assured the global audience that Nigeria would continue to support the declaration of cooperation that has helped in restoring stability in the global oil market.

"Through the Declaration of Cooperation, greater stability is restored globally,  Nigeria believes that having the right price and volume can support our aspiration and ensure  a sustainable revenue generation," he said.

According to Kyari, a continuation of the declaration was the way to go.  

He said a six-month extension was too short a time and would not have the required impact in curbing uncertainty and volatility which existed before the cooperation.

"So a nine-month extension is the way to go considering the objective of the declaration, that is why Nigeria supports the initiative and is also  grateful that big nations are committed to it," Kyari added.

He further expressed the commitment of the NNPC in revamping refineries, noting that in-country refining of crude through multiple channels and collaboration would ensure the nation becomes a major petroleum product exporter by 2020. 

"Nigeria's objective at today and tomorrow's OPEC is to support the declaration of cooperation that has so far succeeded in restoration of global oil markets stability Further to this, Nigeria's hope is to secure appropriate quota for it cause export and optimal price," Kyari said.

Meanwhile, Nigeria has reaffirmed its strong support for the nine-month extension in oil production cut under the  ‘’Declaration of Cooperation,’’ which seeks to improve global oil market stability among OPEC members. 

Head of the Nigerian Delegation to the meeting, Dr. Folashade  Yemi-Esan, stated this during the press conference, while welcoming the commitment by Saudi Arabia and Russia on the proposed extension.

‘’Nigeria strongly endorses this commendable commitment and support this position, we believe that an extension of nine months is preferable to six months, as it offers greater certainty to the market, thereby reducing market volatility,’’ Yemi-Esan noted.

She suggested that the nation recognised the transformational impact which the ‘’declaration of Cooperation’’ has had on the global oil market with 24 oil producing countries working together and contributing to improved market stability.

Yemi-Esan who is the Permanent Secretary of the Petroleum Resources ministry noted that the development had benefited consumers and producers as well as impacted positively on the health of the global economy. 

She added:  "The convening of the 176th Meeting of the OPEC Conference and the 6th OPEC and non-OPEC Ministerial Meeting offers the Nigerian delegation the opportunity to reaffirm our strong support for the ‘Declaration of Cooperation.’

"When the ‘Declaration of Cooperation’ was first signed on 10 December 2016, participating countries recognized the uniquely challenging circumstances in Nigeria, particularly related to the security situation in producing regions of the Niger Delta, and graciously agreed to an exempt Nigeria from the voluntary production adjustments. 

“Nigeria appreciates this act of solidarity and thanks all participating countries for their steadfast support during the challenging period.

"Following the 5th OPEC and non-OPEC Ministerial Meeting on 7 December 2018, Nigeria voluntarily agreed to re-commit to the collective endeavor to adhere to adjustments in production levels. 

“We have also supported this undertaking by actively participating and engaging in the Joint Ministerial Monitoring Committee.

"We acknowledge and welcome the recent expression of commitment by the Kingdom of Saudi Arabia and the Russian Federation following the meeting of the G20 in Osaka, Japan, to continue the ‘Declaration of Cooperation’ for a further nine months. 

“Nigeria strongly endorses this commendable commitment and supports this position. 

“We believe that an extension of nine months is preferable to six months, as it offers greater certainty to the market, thereby reducing market volatility.

"With presidential elections over and the reelection of President Muhammadu Buhari, Nigeria will intensify efforts to ensure full conformity with the ‘letter and spirit’ of the ‘Declaration of Cooperation,’ despite the obvious domestic challenges this may pose. 

“We will work to stabilize production by improving the security architecture of producing regions and through continued engagement with local communities, particularly in the Niger Delta region."

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