African Oil Producers Seek Production Cut

African Oil Producers Seek Production CutAfrican Oil Producers Seek Production Cut

The African Petroleum Producers Association (APPA), which represents oil and gas producers from Algeria to South Africa, called for a cut in oil output globally, Bloomberg reported.

The group also includes the continent’s biggest producers, Nigeria and Angola. It’s starting an initiative, led by Angola and Algeria, to seek collaboration between members of the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers to reduce output and stabilize oil prices, which have halved since the end of June.

APPA wants “to set up a platform of commitment at the international level from the producing countries,” said Ousmane Doukoure, director of exploration and production at Ivory Coast’s oil ministry.

African countries from Angola to Nigeria to Equatorial Guinea have had to cut their budgets in recent months after the plunge in oil prices affected the amount of income they will get from their biggest exports. Countries, including the continent’s biggest economy Nigeria, have slashed growth forecasts.

“We are very concerned by the drop of the price,” said Gabriel Lima Obiang, oil minister for Equatorial Guinea, after the meeting. “We are revising already our budget because of the price and we have been welcoming an initiative by Angola and Algeria to study a way we can work together to stabilize the price in the future.”

Of the African producers only Algeria, Libya, Nigeria and Angola are members of OPEC. While some members of OPEC have called for an output cut the biggest producer in the organization, Saudi Arabia, is opposing any reduction in output.