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Nigeria hopes to produce 2.5 million barrels of crude per day in 2007
AFP
ABUJA
Petroleumworld.com 10 12 06
Nigeria, Africa's largest oil producer, hopes to produce 2.5 million barrels of crude per day and sell at 40 dollars per barrel in 2007, President Olusegun Obasanjo said Wednesday.
Presenting the 2007 budget proposals for the last time -- as he will step down at the end of May -- to a joint session of the National Assembly, Obasanjo also said his government hopes to raise GDP from seven percent this year to 10 percent in the coming year and reduce inflation from 10 percent to nine.
The 2006 budget was based on an oil price of 35 dollars per barrel.
"We have increased the benchmark price of oil to 40 dollars per barrel to ensure that we fund the budget with predictable revenues whilst ensuring that the benchmark price remains prudent," said Obasanjo, whose country currently presides the Organization of the Petroleum Exporting Countries (OPEC) cartel.
He said: "we have remained conservative in our estimate of crude oil production given the present disruptions in the Niger Delta," where armed militants have this year increased a violent campaign of killings, kidnappings and seizures of oil facilities.
At least 14 soldiers have been killed in the restive region this month, while seven foreigners are still being held hostage and more than a dozen oil workers are being held on an oil flowstation in southern Bayelsa State.
Nigeria expects 4.3 trillion naira (33 billion dollars, 26.4 billion euros) of total revenue in 2007, 3.2 trillion naira (24.5 billion dollars, 19.6 billion euros) or 84 percent of which is expected to come from oil, Obasanjo said.
Its proposed total expenditure is 2.3 trillion naira, representing a 21 percent increase over the 1.9 trillion naira authorised by the 2006 appropriation act, he said.
A total of 61 billion naira (469 million dollars, 375 million euros) has been set aside in the 2007 budget to service the nation's 4.8 billion dollars of external debt, made up of 1.4 billion dollars owed to the London Club, 2.7 billion dollars of multilateral debts, 0.6 billion dollars in promissory notes and 0.1 billion dollars of non-Paris Club debts, he added.
Security (defence and police), works, education, health and power have the largest expenditure priority allocation in the 2007 budget, which Obasanjo said aims to make life easy for the the "ordinary citizen".
AFP 11 2033 GMT 10 06
Copyright ©2006 AFP. All Rights Reserved.
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