FG to only approve oil projects of high value so as to conform with OPEC output caps

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Oil minister Emmanuel Kachikwu said late Tuesday, that Nigeria will refocus on oil projects that deliver higher returns to keep production within the limits set by OPEC, Platts reports.

The country has been struggling to make good on its pledge not to produce above 1.8 million b/d under the OPEC/non-OPEC output agreement, with output hitting its highest level in more than two years in January at 1.93 million b/d, according to the S&P Global Platts survey.

“Oil prices are currently depressed at $60-$70/b and, coupled with the production quota imposed by the Organization of Petroleum Exporting Countries, Nigeria will begin to look at its priorities differently,” Kachikwu said in an oil ministry statement. Africa’s biggest oil producer “will only consider projects that are of higher net value for the country,” he added.