The Nigerian Petroleum Minister, Ibe Kachikwu, said that the country’s losses in oil production due to militant attacks have hit 900,000 b/d, Oil Price reported. The African nation continues to lose about $274m as the US and India cut their imports from Nigeria by 53% and 43% respectively.
Kachikwu added that the federal government is in talks with the militant groups responsible for this cut in production in the Niger Delta, saying that over the next couple of months, the negotiating parties will hopefully reach an agreement that will put an end to the attacks. He concluded, “we are producing some 1.5m b/d and need on average 900,000 b/d to catch up on what we have lost. If we can achieve peace, this will be feasible.”
The drop in export volumes has been attributed to the rising uncertainties existing in the country with regards to meeting deliveries. A spate of bombings and the blowing up of crude oil pipeline of the Chevron Nigeria Ltd by militants was considered to be one of the reasons.
Many major oil companies in Nigeria including ExxonMobil have declared force majeure of crude oil export while few others were forced to suspend or cut production as a result of the attacks on oil facilities in the country.