Oil cut decision by the Organization of Petroleum Exporting Countries (OPEC), has received the assurance of Nigeria’s commitment to continue on the current agreement.
This is contained in a letter from the Nigeria Ministry of Petroleum resources, the Office of the Honorable Minister of State.
The letter which carries the heading; Nigeria, others assure commitment to roll over of April decision on oil cut was written ahead of the next meeting scheduled to hold today, Saturday 6 of June, 2020.
Mr. Timpire Sylva, the Honorable Minister of State Petroleum Resources in the letter says, “As Organization of Petroleum Exporting Countries (OPEC) plans another meeting, I want to join many other OPEC and Non OPEC declaration of cooperation member countries to assure all our partners of Nigeria’s total commitment to a continuation of the current agreement on oil production management beyond June 2020”.
He says that, Nigeria is satisfied with the gradual improvement in oil prices since the last meeting of the group and he urges all producers to continue to make the necessary sacrifices to sustain the gains made from the agreement.
The scheduled meeting is to be held virtually through a webinar, and a formal announcement of a roll-over of the April decision is to be made, and with the reservation of one or two countries notwithstanding.
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by: Qatar (1961) – terminated its membership in January 2019; Indonesia (1962) – suspended its membership in January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership in December 1992, reactivated it in October 2007, but decided to withdraw its membership effective 1 January 2020; Angola (2007); Gabon (1975) – terminated its membership in January 1995 but rejoined in July 2016; Equatorial Guinea (2017); and Congo (2018). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.
OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.