The Nigerian National Petroleum Corporation (NNPC) has said the country might have to halt the production of oil if the prices of oil continued to fall consistently.

Brent, the benchmark against which Nigeria’s oil grades are priced, plunged by $6.34 to $19.23 per barrel on Tuesday amidst falling demand and an unprecedented glut in the global market that is causing storage to fill up quickly.

Kennie Obateru, the Group General Manager, Group Public Affairs Department, NNPC said Wednesday that even though Nigeria had not stopped oil production, there was a possibility it could.

“If the situation persists, it is something that is bound to happen definitely.

“We can’t keep producing if there is no market to sell to. And it is not something that is peculiar to Nigeria. It is a global thing.

“However, it has not happened. For as much as I know and up till this morning, nothing of such has happened.”

The NNPC top executive noted that stakeholders had to decide before on the way forward before a halt in production could happen.

“We should be positive and hope that things improve. But again, if the situation persists, definitely I think it will come to that.

“However, if it is being considered, then they will have to work out the modalities and details. But I can tell you that it (production halt) has not happened,” Mr Obateru said.

He stated that halting oil production could not be carried out without adequate preparation, adding that crude oil wells produce the gas Nigeria uses for power generation.

Obateru recommended that the country consider how to get the best out of Nigeria’s difficulty in finding buyers for its crude.

Earlier this month, Mele Kyari, the NNPC chief stated that Nigerian oil grades were not rejected even though they were stranded in the market.

Kyari said the 50 cargoes of Nigerian crude that were stranded in March had reduced in number.

“I am happy to announce that that number has gone down substantially. I don’t have the exact number for today, but it is now less than 20.”

Reuters reported on Wednesday that at least three dozen cargoes of April and May-loading Nigerian crude, which are unlikely to be absorbed by the refining systems of oil majors, were striving to attract buyers on Tuesday ahead of the imminent June programmes.

Government had in March reviewed its benchmark for this year’s budget downward from $57 per barrel to $30.

https://www.ripplesnigeria.com/nigeria-may-stop-oil-production-if-price-crash-persists-nnpc/

Production that should have been reduced months ago when Saudi and Russia started fighting....

Dullards...

, NIGERIA SHOULD STOP OIL NOW AND RESTRUCTURE THE COUNTRY.

The one they have been producing and earning from, of what use was it to ordinary masses?

I hope it does not get to that. But what is the contingency plan in any that the government will embark on if petrol dollars stop.

I pity Dangote and his refinery.

funshint:
I pity Dangote and his refinery.

Pity? Dangote is not a producer of oil. If he can store he will be buying now at rock bottom prices. If the refinery come online to coincide with the economy rebound post corona virus he will make a killing.
Then conspiracy theories will say he was among the people that engineer the virus

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E don do for us be that

No please continue.Guess Nigerian leaders refused to divert to non-oil economy for long? The oil must become useless then it will then be to your tents all man.

The end is near.

The Giant of Africa is falling.

So sad.

Mona stop una thievery don too much

Dat one na una consign na

Agriculture comes to mind.

We should invest hugely in farming what we can export. Go back to production. We've depended so much on oil and ignored other sectors that can yield money.

Maybe Nigeria will divide if south south and some parts of south east stops producing oil.

That's is their business not the masses, 80% of Nigeria are not benefiting from the oil, so if they like they should stop

S

Handout country

Nigeria should stop oil now and restructure the country
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Hmm we should all brace up for the storm ahead ooo because with the way Im seeing it things will become very tough in the country from now on

Even after the coronavirus subsides

Hmmm

This should have stopped long time ago, because there is pandemic, the prices of fuel would fall drastically.

Who wants to buy fuel when alot of people are still trying to make sure they eat and stay alive to see the next day.

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So? Who the production help before?

Hehehe

Oil Fall o!... Fall like the wall of Jericho.

Perhaps it will reset their brain to factory mode, so they can consider economical diversification.

All the time: Oyel oyel.... Crooks

So what then will be our source of revenue,since we cant diversify our Economy?

meanwhile

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Wow... We have come to the point of using our oyel to fry akara..

Farming is the way forward

Davidski:
A

Waste of space