Nigeria Has Cut Oil Production By 417,000bpd -Minister
Nigeria has reduced its daily oil production by 417,000 barrels per day, the Minister of State for Petroleum Resources, Timipre Sylva, has said.
The cut is in line with an agreement by OPEC+ to reduce production by 9.7 million barrels per day in May and June.
Advertisement
“The cut for Nigeria is about 417,000 barrels per day (bpd), which is about 23% of our production. And of course, as at the end of April, we have complied,” Sylva was quoted as saying on Friday by Reuters.
With the Coronavirus pandemic paralysing economic activities worldwide, ,demand for oil has dropped to an abysmal low level which also resulted in slide in prices.
Some Nigerian crude oil grades are currently selling at a $5 discount to Dated Brent and the country has reduced its 2020 Budget twice in response to the dwindling oil revenue.
The Federal Government has pegged the oil benchmark for the 2020 budget at $25 per barrel.
Advertisement
The country has also borrowed $3.4billion from the International Monetary Fund to cushion the effect of the oil price slump.
Under the OPEC + deal, Nigeria is expected to produce 1.41 million bpd in May and June.
