Nigerian Oil Minister to consult with participating countries on crude output compliance

The 26th Meeting of the Joint Ministerial Monitoring Committee (JMMC) held on February 3, 2021, has mandated Nigeria's Minister of…

The 26th Meeting of the Joint Ministerial Monitoring Committee (JMMC) held on February 3, 2021, has mandated Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Sylva, to undertake a mission as Special Envoy to the Participating Countries to ensure the attainment full conformity with their voluntary adjustments in output.The participating countries are Congo, Equatorial Guinea, Gabon and South Sudan.

The report of the meeting issued on Wednesday by the Organisation of Petroleum Exporting Countries (OPEC) said that the meeting, which was chaired by Prince Abdul Aziz bin Salman, Saudi Arabia’s Minister of Energy, and Co-chaired by Alexander Novak, Deputy Prime Minister of the Russian Federation, said that the purpose of this mission was to hold consultations with the respective leaders of these countries on the DoC market rebalancing efforts.

“In particular, the Special Envoy will discuss matters pertaining to conformity levels with the voluntary production adjustments and explore how Participating Countries can collectively support and assist each other in achieving full conformity with their supply adjustments.

“Minister Sylva will also discuss with relevant authorities the compensation mechanism in accommodating underperformed volumes as agreed at the June ministerial meetings, and later amended in September 2020.

“Furthermore, this mission will solidify the dialogue channels between Participating Countries, and enhance transparency and information exchange. Given the geographic proximity of these countries, it is a rare opportunity for Ministers and leaders to safely meet in person, following months of virtual conferencing,” the report said.

The Committee commended the positive efforts of all countries participating in the ‘Declaration of Cooperation’ (DoC) for the monumental strides taken toward attaining full conformity with their voluntary adjustments in output.

The meeting noted that the participating countries have been proactive and pre-emptive in measures taken to mitigate the devastating impact of the COVID-19 pandemic on the oil market.

“While progress has been achieved in introducing a greater degree of stability in the oil market since the historic decisions taken in April 2020, Participating Countries will not rest on their laurels. Sustainable oil market stability necessitates a continual renewal of effort, engagement and responsiveness to factors affecting the market,” the report said.

It added that Nigeria is the largest producing country in Africa and a key member of the DoC and that Nigeria will this year, mark the 50th Anniversary of its Membership of the OPEC.