FG Requires ‌$70 Oil Price To Sustain Budget—Sylva

A total of $70 oil price per barrel and a production of two million barrels per day is needed to sustain the Federal Government’s budget.

This was disclosed by the Minister of State for Petroleum Resources, Timipre Sylva, in an interview with Energy Intelligence.

According to Sylva, the cut in production volume by the Organisation of Petroleum Exporting Countries and its allies had helped to stabilise the oil market.

However, he noted that it has not been easy for the country following the 25 per cent cut in budget by President Muhammadu Buhari.

“I must tell you that it is very difficult for the country at this time. We cannot possibly carry on with all our activities.

“The President approved a 25 per cent cut in our budget. That’s 25 per cent of everything that we plan to do for this year out the window before we even started.”

On the level of oil price that will sustain the approved budget the minister said “I cannot tell you what price will be optimal for the country. It’s not just the price; it’s also the production.

“For me, I would say if we produce two million bpd at $70, that would be optimal for Nigeria.”

The minister further said towards the end of this year the country would see a rebalanced oil market.