Nigeria eyeing oil production hike
Nigeria is planning to propose an increase in its OPEC oil production quota to about 2.6 million barrels a day in 2005, says its finance minister.
Ngozi Okonjolweala said on Wednesday Nigeria – Africa’s largest oil exporter – wants its quota to be increased from its current 2.018 million barrels a day.
“For the medium term, depending on our discussion and agreement with OPEC, we are proposing about 2.6 mbd in 2005, 2.67 mbd in 2006 and 2.7 mbd in 2007,” said the minister.
She said the government would base the 2005 budget on $25 a barrel, thereby maintaining the same level as in the 2004.
“We are proposing to craft the 2005 budget on the basis of $25 per barrel,” she said.
Nigeria – also the world’s sixth largest oil exporter – derives more than 95% of its foreign exchange earnings from oil.
Joint venture cash calls, or the government’s equity contributions to joint venture projects with multinational oil companies, would average about $4.2 billion in 2005, and about $4 billion each in 2006 and 2007, the minister also said.