Nigeria, one of the OPEC member countries, has pledged to abide by the output cut agreement of the organisation, OPEC, and its allies aimed at stabilising the global oil market.
The country’s national oil company Group Managing Director Mallam Mele Kyari made the promise while speaking at the virtual Gulf Intelligence: Global’ UAE Energy Forum 2021.
The NNPC Boss noted that despite the negative effects of the production cut on government’s revenue, it was the best step towards redeeming the value of hydrocarbon resources at the global market in the interest of all.
Speaking on the topic: ‘Outlook for Africa/Nigeria’s Oil & Gas Sector in Post-Covid Era’, he said NNPC was hopeful that by the end of the year, demand for crude oil would pick up and there would be a marginal increase in output, stressing that the corporation was focusing more on gas, condensate and other revenue streams to tackle the revenue challenge arising from the OPEC+ production cut arrangement.
He explained that gas proved to be a steady and reliable revenue stream during the height of the Covid-19 pandemic in 2020, adding that gas production and utilisation would remain a key priority for the corporation in 2021.
Earlier in his presentation, the United Arab Emirates’ (UAE) Minister for Energy & Agriculture, H.E. Eng. Suhail Mohamed Al Mazrouei appealed to all oil producing nations not to flood the market with crude oil.
He said the UAE was, at the moment, more concerned about balancing the market forces of demand and supply in the global market than growing market share.