THE Nigeria National Petroleum Corporation (NNPC) said it would continue oil production despite the fall in price.
The explanation came on the heels of the speculation that Nigeria had halted the production of the commodity which prices had fallen below its cost of production.
Since the outbreak of the Coronavirus in China last year, the crude oil prices have sustained a steady decline until the last OPEC+ meeting resulted in the marginal increase of crude prices.
With the high hope that the high price would endure, the Minister of State for Petroleum Resources, Chief Timipre Sylva, expressed optimism that the Federal Government could still earn as much as $2.8billion from the rise.
He expressed hope that the Federal Government could still sustain its budget benchmark of $30 per barrel.
The prices however plunged in the global oil communities into panic as they dip to about $11 per barrel on Monday.
In a telephone interview, the Group General Manager, Group Public Affairs Division, NNPC, Dr. Kennie Obateru, said: “Oil production is still going on as I know up to today.
Whoever gave you that information; I don’t know where they got it from. Our partners are the ones managing our assets.
So, they are the ones that will recommend what they think should happen.” Allaying fears over the declining prices of crude oil, he noted that the situation was not peculiar to Nigeria.
He described it as a global economic crisis, adding that only prayers for price rebound could rescue the entire economy.