Niger Delta Diplomacy At Work: Oil Production Recovers In Nigeria

10 Apr 2017   Nigeria

Nigerian President Muhammadu Buhari’s nascent campaign to negotiate with separatists in the oil-rich Niger Delta has proven to be more effective in restoring oil output to pre-conflict highs than his previous all-out war tactic. “Despite the president’s initial threats and bluster on the delta, common sense now seems to be prevailing,” Cheta Nwanze, of Lagos-based head of research at SBM Intelligence, told World Oil this week. “The government needs steady oil production to stand any chance of a quick end to the economic recession.” It’s a numbers game, really. Oil output hit a low last August, with production falling to 1.4 million barrels per day, compared to the 2014-2015 average of 2 million bpd. Since Lagos declared that it had reached a truce with a consortium of militant groups in November, production has recovered to 1.68 million bpd. Only a single force majeure, a clause that allows production companies […]

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