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By TAYO ELEGBEDE
Ahead of OPEC”s 179th conference and the 11th OPEC and non-OPEC Ministerial Meeting next week, the African Energy Chamber, has appealed to African Producers of crude oil not only to stay fully compliant, but to also support the extension of the production cut agreement by OPEC and OPEC+.
According to them, along with gradual reopening of global economies, production cuts are pushing crude oil prices back to $40/barrel much quicker than initially thought,hence no need for any rush.
The Chamber explained how the swift rise in prices was as a result of the agreement and that the same kind of industry cooperation spirit that supported the April 2019 deal needs to remain in place.
“Now is not the time to relax or rejoice too soon, and we need to maintain a strong compliance with the previously agreed deal of April 2019 and extend production cuts,”the Chamber’s Executive Chairman, Nj Ayuk,noted.
Calling on all stakeholders to stay united around the short and long-term interests of the market, Ayuk reiterate, the major role played by African producing nations in ensuring that the OPEC coalition reaches beneficial agreements for producers and consumers.
Extending production cuts, he advanced and ensuring strict compliance will provide an opportunity for African economies to stabilise, because the Pandemic has brought landmark oil and gas projects to a halt across the continent and jeopardised thousands of African jobs.
He added that extending production cuts and ensuring compliance is in line with the Chamber’s Common-sense Energy Agenda and will minimise the impact of the ongoing economic crisis, as well as preserve jobs and give the industry a chance to recover.
He remarked that between January and May 2020, the rig count in Africa which had steadily been rising over the past three years suddenly dropped by 46% as exploratory and development drilling activity was suspended or cancelled.
Ayuk stated that with a more stable price environment, Nigeria can hope for a successful Marginal Fields Bidding Round, Angola can resume the drilling of key exploratory wells and realise its exploration push which has been in the works for two years, and South Sudan can continue its steady march towards peace and security. While smaller producers like Congo, Gabon or Equatorial Guinea can have a chance at regaining the ground they lost.
ELEGBEDE TAYO OREDOLA , a journalist with five years professional experience is self motivated and a team player. Her experience came from diverse media, like The Guardian Newspaper, Radio Nigeria among others and now with the INSIDEBUSINESS in the bid to explore the new media.
Email: [email protected]
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