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Nigeria Says It Will Boost Its Oil Production Soon

A Nigerian official says production may resume shortly at Royal Dutch Shell's E.A. Oilfield, which the company shut down after militant attacks in February. State oil minister Edmund Daukoru told an oil conference in Paris today he believes the offshore field will be back on-line early next week. The field normally produces 115 thousand barrels of crude oil per day. World oil prices fell slightly following Daukoru's comments.

Biran Fawibe is the managing director of the Nigeria-based firm International Energy Services. He told English to Africa reporter Ashenafi Abedje that serious importance should be attached to the Nigerian minister’s statement. He says, “The factors responsible for the cutback in production are being resolved and production will obviously resume in those areas where production has stopped.”

Fawibe says the disruption of Nigerian oil production “has had the effect of increasing the price of oil generally – and especially Nigerian premium crude oil.” He says, “Oil prices have proved very sensitive to any reduction in production, so even an added 100 thousand barrels a day in oil production will have an effect on the prices’ onward trend.” Fawibe says the rise in world oil prices has had an uneven impact on African economies. He says oil-producing countries have seen their revenues go up, while the non-oil producing ones continue to struggle with higher fuel prices. (English to Africa