The meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and Non-OPEC Countries in Vienna, Austria, yesterday extended its exemption from crude oil production cut, thus endorsing the country’s position hat the exemption granted it at the November 2016 Ministerial Conference and extended by the May Ministerial Conference should be sustained until it stabilises its crude oil production.
It also emerged yesterday that the federal government is planning to halt the stealing of Nigeria’s crude oil by introducing a fingerprint technology which will track products anywhere in the world. The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who led Nigeria’s delegation to the JMMC meeting had argued that although Nigeria’s production recovery efforts have made some appreciable progress since October last year, Nigeria is not yet out of the woods.
He noted that even though Nigeria hit 1.802 million barrels per day in August; that was not enough justification for a call by some countries for Nigeria to be brought into the fold. Kachikwu emphasized that Nigeria, as one of the older members of OPEC would continue to work for the good of the Organization and its member countries, respecting whatever agreements and resolutions are collectively made. He stated that Nigeria would be prepared to cap its crude production when it had stabilized at 1.8 million barrels per day.
He said that although Nigeria was not a member of the five-nation JMMC, he had gladly accepted the invitation of the co-chairs of the Committee and the OPEC Conference President to attend the meeting because he believed that the committee was doing a good job and needed to be supported and also to clarify Nigeria’s position on its crude oil production. The meeting noted that overall compliance by OPEC and Non-OPEC participating Countries to the Agreement on crude oil production cut for the month of August was 116 percent.
This compliance level was highest since the agreement came into effect in January 2017. It further noted that the objectives of the Accord were steadily being achieved with the gradual draw-down of inventories by nearly 50 percent since the agreement came into effect In a communiqué after its 5th meeting, which took place yesterday, the JMMC welcomed the participation of Iraq, Libya and Nigeria, and the reaffirmation of their commitment to work closely with other participating producing countries to ensure the success of the Declaration of Cooperation.
The President of the OPEC Conference and Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, Khalid A. Al-Falih, participated in the meeting by telephone, expressed his solidarity with the JMMC, reiterated the commitment of Saudi Arabia to the success of the Declaration of Cooperation and cautioned against complacency. He also reaffirmed the necessity of additional work to be undertaken by under-performing participating countries to bring their conformity levels to 100 percent.
He then thanked Libya and Nigeria for their positive engagement and their ongoing coordination with the participating countries in the Declaration of Cooperation.
The next JMMC Meeting is scheduled to be held in Vienna, on November 29, 2017.