Kachikwu calms fears of potential impact of OPEC output cap on budget

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The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has ruled out worries over the government’s recent submission of a proposal to the OPEC and its allies to cap Nigeria’s oil production at 1.8mbd, THISDAY reports.

Dispelling fears that Nigeria’s 2017 budget could be affected by the production cap, Kachikwu said in Abuja that the country would be fine with the proposal, adding that it had considered and adopted a smart approach to the challenge before approaching the oil producers group with its proposal.

“There is going to be a month-to-month analysis where we will get comfort that all things that prevented us from stabilising our production have ebbed and we can consistently produce above 1.8mbd,” he said. He added; “Again, 1.8mbd refers to crude, it does not refer to our production, our production is about 2.2mb, we have not been asked to attack that, but 450,000 barrels of that is condensate, which are a separate number.”

He went on to say; “Really, in terms of its effects on the 2017 budget, there is really no effect because we are going to continue to use the 2.2mbd number. Baring all the other incidentals in terms of pipeline ruptures, or stoppage of work for one reason or the other, we are going to continue to run to those numbers, the 1.8mbd like I said is purely crude.”