• 1 min Surprise! Aramco Scraps International Listing Plans
  • 1 hour EU Proposes Online Turnover Tax For Big Tech Firms
  • 18 hours API Inventory Data (Tuesdays)
  • 38 mins McDonald's Sets Greenhouse Gas Reduction Targets
  • 24 mins Getting out of oil .. now
  • 33 mins Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 44 mins The Facebook/Cambridge Analytica Scandal
  • 3 hours Step forward or blackmail? DJT: Tariffs On Steel and Aluminum Will Only Come Off If New Fair NAFTA Agreement Is Signed.
  • 16 hours Why Are Investors Ignoring China's Oil Giant?
  • 13 hours 2020 - Electricity From Renewables Will Be Cheaper Than From Most Fossil Fuels?
  • 17 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 20 hours Self-Driving Cars' First Fatality
  • 18 hours New Rules to Phase Out Coal and Reduce Natural Gas in Canada
  • 20 hours Why Is The EU Spending Billions On A Gas Pipeline If It Wants To Fight Climate Change?
  • 13 hours CERAweek Meeting
  • 13 hours Russian influence on energy markets-Report
OPEC Doubles Down On Draining Oil Inventories

OPEC Doubles Down On Draining Oil Inventories

While the OPEC production cut…

Germany’s Pivot From Russian Gas Will Be Costly

Germany’s Pivot From Russian Gas Will Be Costly

Europe’s largest natural gas consumer…

Nigeria On Track To Expand Oil Output Further

Nigeria Oil

As OPEC discusses a six-month extension of the oil production cut agreement that it struck in November, Nigeria plans to continue ramping up its own output.

The country, which is exempt from the agreement because its market share was severely affected by militant activity in the Niger Delta, is planning to complete repair work on the Forcados pipeline and maintenance at the Bonga field by July. Following these, crude oil production should rise to 2.2 million barrels daily, from 1.27 million bpd in March. Last month’s figure was affected by maintenance at Bonga, which produces 225,000 bpd.

Nigeria’s Oil Minister Emmanuel Ibe Kachikwu told Bloomberg in an interview that he hoped the other OPEC members agreed on an extension, so international benchmark prices could remain above $50 a barrel. Nigeria will join the market rebalancing efforts as soon as it returns to the daily production rate from before the string of militant attacks that crippled its oil industry over the last two years.

It has now been three months without bombings and repairs at the Forcados terminal, which was a preferred target for the militants, are apparently proceeding as planned. Back in February, the Oil Ministry said Forcados, which processes some 250,000 bpd of the same-name crude blend, could be back online within weeks, but that turned out to be too optimistic. Forcados was last bombed by the Niger Delta Avengers in early February.

With rising crude production and improving oil revenues, Nigeria earlier this week announced it will make the first payment under a $5.1-billion debt deal with five international oil companies by the end of April.

Related: Copper Prices Could Rise As Another Major Copper Mine Goes On Strike

In exchange for the payments, the companies, including Shell, Chevron, Total, Eni, and Exxon, are supposed to increase their investments in Nigeria’s oil and gas industry. The five majors account for 80 percent of Nigeria’s oil extraction through joint ventures with the Nigerian National Petroleum Corp. The debt was incurred as a result of NNPC’s inability to hold up its end of the bargain with regard to investments to be made by the joint ventures.

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