Nigeria production may hit 3,000bpd

US, Iraq face-off KAYODE EKUNDAYO

WITH Bagdad under heavy attack by the United States, Nigeria’s age-long dream of raising its daily production quota to 3,000 barrels per day may be realised, amidst fear that the fuel crisis across the country may persist.

Nigeria, like other Members of the Organisation of Petroleum Exporting Countries (OPEC) had, in the last few years been lobbying the cartel for a redistribution output quota in line with its objective of attaining a daily production of 3,000 bpd and 30 billion barrels reserves by 2003.

The current attack against Iraq, the third largest crude oil producer and the disruption of supply from Kuwait coupled with Venezuela’s output suspension due to on-going industrial strike, gave a ray of hope to Nigeria that the crisis, if continued, may lead to quota increase to as much as 3,000bpd.

Although OPEC agreed last week before the commencement of the war to leave formal output of 24.5 million bpd in place despite fears that an attack on Iraq could cut off its 1.7 million bpd exports.

Kuwait had already said it may need to shut up to 700,000 bpd of production from fields near its northern boarder with Iraq, where US troops are poised to invade.

Presidential Adviser on Petroleum Matters, Rilwanu Lukman, said with the war, the cartel was ready to drop everything and either hold a meeting where they could agreed to raise production or via telephone if required.

At the cartel last meeting held in Vienna, Austria two weeks ago, Lukman said Nigeria has the capacity to sustain 2.5 million bpd in the space of a few weeks from the current 1.2 million.

“We have the potential to increase to 2.8 and 2.9 million bpd but this is not immediate. Call for quotas increase among members began last year and members are now debating what formula to use, but there was no timetable for the new divisions,” he said.

With the increase in drilling technology innovation around the world, multi-national oil firms in the country, namely Shell Petroleum Development Company (SPDC) ChevronTexaco, TotalFinaElf, Nigeria Agip Oil Company (NAOC) the current nation’s quota.

Their hindrance has been quota restriction which reduce output capacity.

For instance, SPDC, with daily production capacity of 1.3 million barrels, produces an average of 840-900,000

With the crisis in Iraq, international market is under tension as more consumer nations scramble for products to sustain their economy.