The Group Managing Director, NNPC, Mele Kyari clarified Nigeria’s oil production numbers during the oil cuts period, saying Nigeria’s oil production is between 1.6 million BPD and 1.7 million BPD and has fully complied with OPEC obligations. He cited that compliance needed to happen over a period of time.
Mele Kyari disclosed this in an interview with Channels TV on Monday evening. He stated that before the COVID-19 pandemic, Nigeria had reached its highest output in ten years, which was cut short by the effect of the pandemic on the market.
“…precisely last year, our production reached 2.4 million BPD, that did not happen in ten years, that means you also have to face what covid has put on the table, so you have to cut down production.”
“…today we are producing anywhere between 1.6 -1.7 million BPD,” he added.
We are producing between 1.6 to 1.7 m barrels of crude oil per day, says Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari.#NewsNight#CTVTweets pic.twitter.com/XlmecMynQI
— Channels Television (@channelstv) March 22, 2021
On OPEC quota breaches
According to Mr Kyari, Nigeria needed time to meet its obligations and face some bottlenecks; however, the obligations have been fully met.
“There is a distinction between what you can do immediately and what you can do over a period of time. Sometimes we do have technical constraints that make it impossible to meet that quota. You may have seen through OPEC conversations that in some months we actually under-produced. Put in on balance, Nigeria has completely complied with our obligations to OPEC.”
What you should know
Mr. Kyari also disclosed that NNPC will not operate and manage the Port Harcourt refinery upon completion of the $1.5 billion rehabilitation work, but rather a private-sector partner.
“This means that the NNPC will not operate this plant as a basic requirement of the financing institution. The financing partner will ensure that the contractor will work efficiently. Importantly, is that the contractor O&M gave a guarantee that the facility will operate for the duration of the loan and the fact is that the project will be done under a financing structure supported by Afreximbank,” he said.