Nigeria's president optimistic about efforts toward a new pro rata OPEC quota

Nov. 6, 2003
Nigeria President Olusegun Obasanjo is optimistic that his country will be able to renegotiate its pro rata production quota with the Organization of Petroleum Exporting Countries.

By OGJ editors
HOUSTON, Nov. 6 -- Nigeria President Olusegun Obasanjo is optimistic that his country will be able to renegotiate its pro rata production quota with the Organization of Petroleum Exporting Countries.

Speaking Wednesday night at Rice University's Baker Institute for Public Policy, Obasanjo said, "Technically, the quota made to us is unacceptable. We have made this case, and the case remains to be acted upon," he said.

Nigeria has a current quota of 2 million b/d (OGJ, Oct. 6, 2003, p. 5). Meanwhile, the new group managing director of the Nigerian National Petroleum Corp. (NNPC) has said Nigeria's capacity for increased production is higher than other OPEC members.

NNPC Managing Director Funsho Kupolokun told reporters in Lagos that Nigeria expects to raise production capacity to 4.1 million b/d by 2006. Initially, the target date for that much capacity was 2010.

Formerly the presidential adviser on petroleum, Kupolokun assumed his NNPC title this week, succeeding Jackson Gaius-Obaseki.

During his Houston visit, Obasanjo also said that fighting corruption is his administration's first priority.

"It is no longer business as usual," he said, adding that Nigeria is working to open its oil and natural gas sector "to the highest level of international scrutiny."

Obasanjo emphasized that economic reform efforts are under way to ensure open markets and fair competition.