FG Offers To Host OPEC Heads of Government...
 Nigeria’s Output Capacity Hits 3.1m Barrels Per Day
By Hector Igbikiowubo
 20th DEC 2006

The Federal Government has offered to host the meeting of the Heads of Government of the Organisation of Petroleum Exporting Countries (OPEC), in the first quarter of next year in Abuja, to boost economic and social cooperation among member countries.

Nigeria crude oil output capacity is now 3.1 million barrels per day, having added 600,000 barrels per day in the last four years well on its way to achieving the national aspiration of 4.5 million barrels per day by 2010.

President Olusegun Obasanjo made the offer yesterday  in Abuja while declaring open the 143rd conference of the organisation, adding that at the last Heads of government meeting of member countries in Caracas, Venezuela, member countries agreed to institutionalise the Summit once every five years.

“A little over six years ago when we met in Caracas, Venezuela for the second OPEC Summit, my colleagues and I agreed to promote mutually beneficial cooperation among OPEC national oil companies, to instruct our finance ministers to study ways and means of enhancing financial cooperation among our countries, and to promote cultural interaction amongst our people,” the President recalled.

He noted the roles played by member countries of the organisation in achieving market stability, adding however, that market stabilisation is the collective responsibility of which has to be shared equitably among all stakeholders.
“As developing countries with so much competing social, economic and political demands on our resources, we are cognizant of the cost of maintaining spare capacity needs.
Oil being a wasting asset, it is only natural that its owners realise full value for it. Our countries deserve to get the full value of our resources in order to build a solid foundation for our economies and improve the living standard of our people.”

The President noted that the organisation’s cohesion, unity of purpose and constructive engagement with stakeholders on world energy issues has resulted in greater understanding and harmony between major oil consuming countries, non-OPEC producing countries and OPEC member countries.
However, he decried and noted as worrisome the inability of member countries to replicate its ability to stabilise the oil markets in the promotion of cooperation and collaboration in political, social, cultural, economic, technical and other non-oil activities between member countries, while hoping that the meeting will examine the issue.

The President also decried OPEC’s inability to appoint a substantive Secretary General for the Organisation, pointing out that it cannot serve its membership and the global community to its full potential, otherwise.

In his welcome address, Dr. Edmund Daukoru, the Minister of State for Petroleum Resources and President of the 135th conference of the Organisation disclosed that Nigeria has added additional production capacity of 600,000 barrels per day over the last four years, bringing total installed production capacity to 3.1 million barrels per day.
He also disclosed that the country was pursuing an aggressive Liquefied Natural Gas (LNG) development to raise aggregate national output from 22 metric tonnes per annum to 44 MTPA by 2010.

Dr. Daukoru also pointed out that gas is gaining significant share in the global energy mix and that the World Bank estimates that the global demand for gas will outstrip oil as early as 2025.
He said this projected dominance of gas is being driven by an assortment of factors that includes accelerated world economic activity growth, changing energy markets, and advances in technology.
“In addition, gas offers significant environmental advantages over oil and coal and, as such, has become the preferred fuel in the power sector,” he said.

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