Incoming NNPC GMD Lauds OPEC’s Oil Cut Extension

July 2, 2019
Incoming NNPC GMD Lauds OPEC's Oil Cut Extension

By Dipo Olowookere

The newly appointed Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, has commended the Organization of the Petroleum Exporting Countries (OPEC) for extending the oil production cut by nine additional months.

The reduction in the output of oil for some members of the cartel, including Nigeria, was taken under the Declaration of Cooperation, which seeks to improve global oil market stability among OPEC members.

Oil industry under the cooperation, OPEC member and non-member nations accelerated the stabilisation of global oil market through voluntary production adjustments which amounted to 1.8 million barrels per day.

In a chat with newsmen in Vienna, venue of the 176th Meeting of OPEC, Mr Bala Wunti, Group General Manager, Corporate Planning and Strategy, who represented Mr Kyari at the meeting, noted that pricing and volume of products remained key factors in ensuring sustainable revenue generation for the country.

“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.

“We believe that continuation of the declaration is the way to go. A six-month extension is too short a time and will 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,” he informed energy journalists present at the meeting.

Mr Wunti 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.

According to him, that is the vision of the incoming NNPC boss, and that is the vision of Nigeria.

Other delegates representing Nigeria at the meeting are the permanent secretary, ministry of Petroleum, Dr Folashade Yemi-Esan; Nigeria’s OPEC Governor, Dr Omar Farouk Ibrahim; Nigeria’s Ambassador to Austria, Victoria Okeke; and the General Manager, OPEC, NNPC, Umar Gbobe Aminu.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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