Govt's bid to increase oil output quota failed
By Sulaimon Salau
NIGERIA’S move to secure an increase in the oil output quota set by the Organisation of Petroleum Exporting Countries (OPEC) yesterday failed for the second time, as the cartel agreed to leave its existing quotas unchanged.
The decision confounded the wide speculations on the possible decision of OPEC to review oil output quotas, and hope of some of the member countries that desire output hike.
Nigeria had in 2010 pushed for the output increase, which failed, owing to OPEC’s decision to maintain output quota at its December meeting.
At the 159th meeting of OPEC conference in Vienna yesterday, ministers decided to maintain the status quo after tough deliberations that lasted for hours.
The Secretary General, Abdullah El-Badri, said immediately after the meeting: “Unfortunately we are unable to reach a consensus this time to reduce or raise our production.”
The current official output target stands at 24.84 million barrels per day (mbpd).
Nigeria would now need to wait till the next meeting, which El-Badri said would hold in mid-December in Vienna, for the situation to be reassessed.
The nation, which is basking in the euphoria of the success of the amnesty programme, has called on OPEC to increase its quota from about 1.87 million due to the relative peace in the oil-rich Niger Delta region.
The former Minister of Petroleum Resources, Diezani Alison-Madueke, had said she expected the country’s quota to be increased at the OPEC.
OPEC cut quotas sharply, effective January 1, 2009, to combat a drop in demand as recession bit, but has since left those formal targets unchanged, which has resulted in a large discrepancy between official and actual output.
Meanwhile, the Acting Minister of Petroleum of the Islamic Republic of Iran, who was the President of the Conference, Mohammad Aliabadi, in his opening address obtained by The Guardian said: “Oil market stability is the responsibility of all parties – producers and consumers alike. We all benefit from stability, and so we must all contribute to it. OPEC plays its part to the full, by ensuring that there is always enough oil to fuel the world economy and support growth. Other stakeholders must cooperate with us in achieving lasting stability, from which the world community at large will benefit.”
Crude oil price has continued to soar above $100 for quite some weeks. This is attributed to security concerns in the Middle East and North Africa, but some in the cartel have seen the need for a review in the quota
Nigeria had in 2010 pushed for the output increase, which failed, owing to OPEC’s decision to maintain output quota at its December meeting.
At the 159th meeting of OPEC conference in Vienna yesterday, ministers decided to maintain the status quo after tough deliberations that lasted for hours.
The Secretary General, Abdullah El-Badri, said immediately after the meeting: “Unfortunately we are unable to reach a consensus this time to reduce or raise our production.”
The current official output target stands at 24.84 million barrels per day (mbpd).
Nigeria would now need to wait till the next meeting, which El-Badri said would hold in mid-December in Vienna, for the situation to be reassessed.
The nation, which is basking in the euphoria of the success of the amnesty programme, has called on OPEC to increase its quota from about 1.87 million due to the relative peace in the oil-rich Niger Delta region.
The former Minister of Petroleum Resources, Diezani Alison-Madueke, had said she expected the country’s quota to be increased at the OPEC.
OPEC cut quotas sharply, effective January 1, 2009, to combat a drop in demand as recession bit, but has since left those formal targets unchanged, which has resulted in a large discrepancy between official and actual output.
Meanwhile, the Acting Minister of Petroleum of the Islamic Republic of Iran, who was the President of the Conference, Mohammad Aliabadi, in his opening address obtained by The Guardian said: “Oil market stability is the responsibility of all parties – producers and consumers alike. We all benefit from stability, and so we must all contribute to it. OPEC plays its part to the full, by ensuring that there is always enough oil to fuel the world economy and support growth. Other stakeholders must cooperate with us in achieving lasting stability, from which the world community at large will benefit.”
Crude oil price has continued to soar above $100 for quite some weeks. This is attributed to security concerns in the Middle East and North Africa, but some in the cartel have seen the need for a review in the quota
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