OPEC: Nigeria, Others Plan $150bn Project
By Chika Amanze-Nwachuku with agency report, 11.30.2007
Nigeria and 12 other members of the Organization of Petroleum Exporting Countries (OPEC) are planning to inject $150 billion (£72.4 billion) over the next five years into more than 120 projects intended to boost oil output.
Making the disclosure yesterday in Singapore, President of the organization, Mohamed al-Hamli, who is also the Oil Minister of the United Arab Emirates, OPEC’s third-largest-producing country, said the programme will boost the overall production capacity of member countries by more than five million barrels a day.
He further revealed that large and complex refineries are being planned or under construction, both domestically and abroad.
The programme would help to satisfy the growing demand for uninterrupted secure oil supplies, as well as offering an adequate level of spare capacity for the benefit of the world at large. OPEC member countries are also investing heavily in refining and delivery infrastructure, such as pipe-lines, storage facilities and terminals, he said.
OPEC, which supply about 40 per cent of global crude oil production of 85 million barrels per day, are expected to discuss raising output at their next policy meeting in Abu Dhabi on December 5. Production levels for the first quarter of 2008 will also be reviewed at the meeting.
Some members, including Indonesia and Saudi Arabia, OPEC’s largest producer, which control about a quarter of the world’s proven oil reserves, are thought to be willing to consider an increase. Others, such as Venezuela, are less keen to bow to pressure from big consumer countries, including the United States.
Since August, crude prices have surged more than 40 per cent from below $70 a barrel to close to $100. Yesterday oil prices have slipped nearly 4 per cent.
Meanwhile, top officials of the organization have raised alarm over the oil prices threatening to top $100.
The officials who reiterated that markets were well supplied however declined to comment whether OPEC would raise output at the next week.
The 13- member organization has been under pressure from consumer nations to raise production again to stop oil prices from vaulting above $100 a barrel, saying it would add strain to a vulnerable world economy.
But few days to the December 5 meeting in Abu Dhabi, both the OPEC President and Saudi Oil Minister Ali Al Naimi still assert that prices were beyond the group’ s control.
The duo also said they were not aware of any specific output proposals, even as they dismissed reports that Gulf ministers were considering an increase of up to 750,000 barrels per day.
"We observe with great concern the recent escalation of oil prices.
