NIGERIA TO ABIDE BY OPEC QUOTA, ENACT PRODUCTION

UNCLAS LAGOS 002516 SIPDIS SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY STATE FOR AF/W STATE FOR CA/OCS/FROBINSON STATE FOR EB/ESC/IEC/ENR/BLEVINE STATE FOR DS/IP/AF STAT FOR INR/AA STATE PASS DOE FOR DAS JBRODMAN AND CGAY STATE PASS TREASURY FOR ASEVERENS AND SRENENDER STATE PASS DOC FOR PHUPER STATE PASS TRANSPORTATION FOR MARAD STATE PASS USAID FOR GWEYNAND AND SLAWAETZ E.O. 12958: N/A TAGS: EPET ECON NI SUBJECT: NIGERIA TO ABIDE BY OPEC QUOTA, ENACT PRODUCTION CUTS GON Indicates it Will Abide by OPEC Production Cuts -------------- -------------- ¶1. (SBU) Alhaji Jafaru Paki, Special Assistant to the President on Petroleum, confirmed to Energy Off on 14 December that the GON intends to abide by OPEC's request to "maintain discipline" with respect to OPEC quotas. Paki demurred from characterizing this as a "production cut." However, complying with the current OPEC production ceiling of 2.224 million barrels/day will entail a reduction of between 150,000 and 200,000 barrels/day. Major energy firms contacted by Energy Off had not yet received instructions from the GON or the Nigerian National Petroleum Corporation (NNPC) to reduce production. BROWNE