• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 9 hours One Last Warning For The U.S. Shale Patch
  • 5 hours Modular Nuclear Reactors
  • 13 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 4 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 14 hours Chile Tests Floating Solar Farm
  • 4 hours Poll: Will Renewables Save the World?
  • 1 day China's E-Buses Killing Diesel Demand
  • 1 day Trump sells out his base to please Wallstreet and Oil industry
  • 1 day China's Expansion: Italy Leads Europe Into China’s Embrace
  • 4 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 2 days Trump Tariffs On China Working
  • 2 days Biomass, Ethanol No Longer Green
  • 24 hours New Rebate For EVs in Canada
Oil Prices Dive On Economic Fears

Oil Prices Dive On Economic Fears

While it seemed like the…

Central Asia’s Biggest Energy Challenge

Central Asia’s Biggest Energy Challenge

Russia’s Lukoil has moved to…

Nigeria Could Soon Start Cutting Oil Production

Egina Total

Nigeria could start reducing its crude oil production in line with the OPEC-wide output cut agreed last December, President Muhammadu Buhari said as quoted by Nigeria media, speaking to a special envoy of the Saudi king Salman.

The country was not this time exempted from the cuts: OPEC assigned it a production cut quota of 2.5 percent of the 1.7 million bpd the West African country was producing when the cut agreement was struck. This amounts to about 40,000 bpd, Energy Minister Emmanuel Ibe Kachikwu said at the time.

However, instead of reducing its production, Nigeria boosted it with the start of production at the giant Egina offshore field, operated by French Total. The French supermajor began production at Egina on December 29. Total noted that the plateau production at the ultra-deepwater field would be 200,000 barrels of oil per day, which would account for some 10 percent of Nigeria’s oil production at that future point.

Following a wave of militant violence in 2016 and early 2017 that crippled the country’s oil industry, Nigeria’s oil production started to recover in the latter half of 2017, when attacks on oil infrastructure subsided. According to the Nigerian National Petroleum Corporation (NNPC), the country’s oil production increased by 9 percent in 2018 compared to 2017.

Now, however, Saudi Arabia is showing determination to get everyone in line to boost prices, and is sending a special envoy to Nigeria, one of OPEC’s larger producers. Indeed, Buhari was quoted as saying he wished there was no need for Nigeria to reduce its production of crude oil and he’d rather the country could produce more.

He went on to add that “I have listened carefully to the message. I will speak with the Minister of State for Petroleum. I will call for the latest production figures. I know that it is in our interest to listen. We will cooperate.” The statement issued after the meeting also said higher oil prices would be beneficial for both Saudi Arabia and Nigeria: an argument that has been put to the test repeatedly and has not invariably passed this test.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News