Sunday Williams
3 October 2008
The Federal Government is to consider the request for the renewal of crude oil allocation under the government to government crude oil contract by Kenya with a view to improve bilateral relations between the two countries.
The Minister of State for Energy (Petroleum), Odein Ajumogobia, disclosed this during a courtesy visit by the High Commissioner of Kenya to Nigeria, Daniel Koikai. A statement from the Minister's Chief Press Secretary, F.U.Osammor, said while affirming the request from the Government of the Republic of Kenya, the Minister stated that there were constraints and challenges.
He explained that the unlimited volume of oil to be allocated has hindered decisive action by the Federal Government, coupled with other extraneous factors like the increase in crude oil price in the world market and the high demand for it. Ajumogobia however said that Nigeria is currently processing and reviewing the extant crude oil lifting contracts against next year, adding that Kenya is one of the countries to be considered in that regard. He added that the quantity of crude oil Nigeria exports to the international market will determine the volume of the allocation and affirmed that the country usually strives to balance the needs of sister African countries from time to time.
The minister also disclosed that the current production of crude oil by the country has been boosted by the new supply from the offshore sector of the oil industry. In his remarks, the Kenyan High Commissioner, H.E. Daniel Koikai, said that the Kenyan Government appreciates the brotherly support of Nigeria under the Government to Government crude oil contracts between the two countries, hence the call for its renewal and increase in quantity.
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