OPEC SCRIBE VISITS NIGERIA: The Worst Is Over For Oil Market.... BARKINDO

MOHAMMED SANUSI BARKINDO

Emmanuel Onotevure Abuja    The Secretary General of the Oil Producing and Exporting Countries, OPEC Dr. Mohammed Sanusi Barkindo has arrived Nigeria for the 16^th Nigeria Oil and Gas Conference and Exhibition has described his visit as an overwhelming experience.

Sanusi Barkindo stated this while on a courtesy visit to the Honourable Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachikwu at the NNPC Towers in Abuja on Monday 27th February 2017.

The OPEC Secretary General leading an eight man delegation of OPEC members to Nigeria described his coming home to Nigeria as exciting and pleasing   as discussions centering on market dynamics in the petroleum sector will be the focus.

The visiting OPEC scribe speaking at the ceremony stated that his visit which can be likened to the home boy coming home, stated that it is an ample opportunity to share his experience about a great Nigerian; Dr. Ibe Emmanuel Kachikwu the Honourable Minister of State for Petroleum Resources.

According to Sanusi Mohammed Barkindo, oil production cuts have been well supported by all participating OPEC countries despite some encumbrances for non-OPEC members, he said.

The "worst is over" for the oil market; almost two months into the group's supply cut deal with Russia and other producers while for non-OPEC countries this is the first time so we can expect teething challenges but the commitment from all ministers, all participating countries, is very strong", Barkindo emphasized.

"We remain optimistic that the worst is over for this cycle as the now challenge is on how to solidify the platform of 24 (countries)" in reference to the 13 OPEC and 11 non-OPEC members as the signals are highly positive and encouraging", the OPEC Chief Scribe stated.

Tasked on cut-exemption for countries like Iran, Libya and Nigeria, the Secretary General stated that: "these countries will continue to be exempted for the next six months and while we continue to pray, hope they recover their production facilities and return to the market fully".

Under the deal, the Organization of the Petroleum Exporting Countries agreed to curb output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-OPEC producers agreed to cut around half as much.

“The production data for January in OPEC's most recent monthly report showed strong conformity from participating OPEC nations with agreed output curbs of between 90 and 94 percent”, he said.

Dr. Sanusi Barkindo commended Minister for his focused leadership despite the daunting challenges facing the country with the global lull in Oil prices as it has its attendant effects in the funding of exploration and exploitation.

The approach has been practical but very productive in the cash calls as this has seen tremendous improvements in the international price of oil which he attributed to the peace currently being experienced in the Niger Delta areas of Nigeria and that of other nations where there had been challenges in the past.

Dr. Barkindo expressed his desire and that of his team at OPEC to remain focused while also noted that there is need for the monitoring of the stability of production and pricing.

The OPEC Secretary General while speaking on the need for diversification from oil to other sources of revenue, stated that, like many other oil producing nations the world over, Nigeria has to critically look at the aspect of diversification of its economy from strictly oil dependence to other sectors within the context of the vision 2030.

According to Sanusi Barkindo, the sector lost about $1trillion since the plunge but the determination of the team at OPEC to maintain the platform, remains resolute. He expressed his belief that the future is bright when compared to what the country had hitherto experienced in the past years.

“We have prepared a report on our long term outlook which will be presented in the course of this visit”, he said.

The OPEC scribe thanked Ibe Kachikwu for his belief in him while also expressing his gratitude to his team for keeping faith with him.

Responding, Dr. Kachikwu described Barkindo as a man with “tremendous skill and a great intellect who thinks outside the box and a humble personality”.

He thanked the OPEC scribe for the commendations while also assuring him of his support at all times for the growth and success of Nigeria and the group.