NNPC’s Kyari Lauds OPEC Move To Extend Oil Production Cuts By 9 Months

The incoming Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kolo Kyari, has described as “way to go”, moves by the Organization of the Petroleum Exporting Countries (OPEC) to extend oil production cuts by nine months.

OPEC alongside its allies are meeting today, Monday, where the decision to extend oil production cuts by 9 months will be reached under the “Declaration of Cooperation”.

The intergovernmental organization hopes to get non-members such as Russia to endorse the deal in order to keep global oil prices higher.

Nigeria’s Kyari, who was recently appointed as head of the country’s oil giant, NNPC, has welcomed the development as he expressed optimism that the declaration will restore greater stability in global oil prices.

The incoming NNPC GMD, who was represented at the 176th Meeting of OPEC by Mr Bala Wunti, noted that higher oil prices and volume of products will help sustain the country’s revenue generation.

“Through the Declaration of Cooperation, greater stability is restored globally, Nigeria believes that having the right price and volume can support our aspiration and ensure a sustainable revenue generation’’ ‘’We believe that continuation of the declaration is the way to go.  A Six-month extension is too short a time and will not have the required impact in curbing uncertainty and volatility which existed before the cooperation,” said Wunti.

“So a nine-month extension is the way to go considering the objective of the declaration, that is why Nigeria supports the initiative and is also grateful that big nations are committed to it,” he said.

Meanwhile, Dr Folashade Yemi-Esan, who led the Nigerian delegation to the OPEC meeting, said the country welcomes the 9-month extension as it would improve global oil market stability among OPEC members.

Yemi-Esan said, “Nigeria strongly endorses this commendable commitment and support this position, we believe that an extension of nine months is preferable to six months, as it offers greater certainty to the market, thereby reducing market volatility.”

Yemi-Esan, who is Permanent Secretary of the Petroleum Resources Ministry, also acknowledged the positive impact the earlier “declaration of Cooperation” has had on the global oil market with 24 oil producing countries working together and contributing to improved market stability.

Meanwhile, oil prices gained 2.4% on Monday in anticipation of the deal to continue to cut down on oil production.