The Organisation of Petroleum Exporting Countries (OPEC) has agreed to allow Nigeria supply crude oil to the global market, in continuation of the exemption from the oil production cuts agreed on by members and non-members.
The decision was made at the meeting of the joint ministerial monitoring committee of OPEC and non-OPEC countries which held in Vienna on Friday.
Following the drop in price of crude oil, OPEC had agreed to an oil production cut in December 2016, with Nigeria and Libya.
This was to enable both countries stabilise production.
What is happening:
Minister of state for petroleum resources, Ibe Kachikwu who was at the meeting said in a statement that Nigeria was not yet out of its oil crisis.
He however, admitted that the country was making considerable progress since October last year.
Kachikwu said even though Nigeria has the capacity to produce 2.3 million barrels of oil per day, it would not.
“We’re close to where we were before but in terms of extra capacity given all the new fields warming up to go, probably 2.2, 2.3 or 2.4. Obviously we will not produce that.
“We have placed some natural cap on ourselves also within the 1.8 million barrels per day band.”