Ibe Kachikwu, minister of state for petroleum resources, says Nigeria has resisted the word “cut” in crude production.
He said this in reaction to the country’s exemption from the production cut agreed on by the Organisation of Petroleum Exporting Countries (OPEC).
The minister, however, said Nigeria has been cautioned to be disciplined and not flood global markets with crude.
Kachikwu made this known on Thursday while speaking to Bloomberg on the sidelines of the 173rd meeting of the OPEC conference holding in Vienna.
“We’ve been asked to be disciplined, the word cut has not been used. We’ve resisted the word cut. The word cap has been accepted by me a long time ago,” he said.
“Clearly, there is a continuing obligation to ensure that we do not just flood the market because of the exemptions we were given.
“There’s a lot more energy around bringing everybody to the ball park, Nigeria is willing to be in that ballpark and contribute.
“Our contribution is fairly limited because we are still lacking yet in that capacity to reach the marks anywhere soon.”
He said Nigeria’s current production is around 1.75 million barrels per day and that the 1.8 million barrels benchmark is comfortable.
“Our current production is 1.75, we are still below the 1.8 that was the benchmark which is comfortable but you’re going to see a lot more pressure as we go into next year
“Sometime late next year, we will probably see the capacity of Nigeria to do close to 2.3, 2.5.
“Can we do it? Probably not if we all keep to discipline. We are now going to be looking at producers within our country and those giving us barrels at the least cost price because we are going to cut scientifically those who are unable to produce below a certain benchmark.”