ABUJA - Nigerian Oil Minister Odein Ajumogobia said on Wednesday the country, an OPEC member, would be comfortable with oil at $80 a barrel but that it did not want to cut its own production to defend that price level.
The Organization of the Petroleum Exporting Countries has called an emergency meeting for this Friday, when it is widely expected to agree to cut supply to defend prices.
A sharp drop in global crude prices has played havoc with the key assumptions on which Nigeria's spending plans are based, forcing sub-Saharan Africa's second largest economy to review its 2009 budget proposal.
Nigeria depends on crude oil exports for most of its foreign exchange earnings.
"Nigeria would be comfortable to have the oil price at $80 in view of the production cost and in view of the fact that Nigeria is looking for more money to finance its budget," Ajumogobia told reporters in the capital Abuja.
"What we are doing now is gathering data to be able to forecast. I always go to OPEC with an open mind ... We know what Nigeria's interests are. We want to be able to meet our budgetary requirements for 2009," Ajumogobia said.
"We are realistic as to what the price will be. I want to think that given the scenario of where we are now, $80 will be comfortable and we will not have to worry if the oil price is within that range," he said.
But he said a cut in Nigeria's own production was not in its best interest as it needed as much oil revenue as it could get.
Nigeria, the world's eighth biggest oil exporter, is expected to ship an average of 1.89 million barrels per day in October, according to export programs cited by traders.
Ajumogobia confirmed that Nigeria had lowered the benchmark oil price in its draft 2009 budget, due to go before parliament in the coming days, to $45 per barrel from an initial $62.5.
Economists say the adjustment will cut budgeted oil revenue by more than 30 percent next year.
The Organization of the Petroleum Exporting Countries has called an emergency meeting for this Friday, when it is widely expected to agree to cut supply to defend prices.
A sharp drop in global crude prices has played havoc with the key assumptions on which Nigeria's spending plans are based, forcing sub-Saharan Africa's second largest economy to review its 2009 budget proposal.
Nigeria depends on crude oil exports for most of its foreign exchange earnings.
"Nigeria would be comfortable to have the oil price at $80 in view of the production cost and in view of the fact that Nigeria is looking for more money to finance its budget," Ajumogobia told reporters in the capital Abuja.
"What we are doing now is gathering data to be able to forecast. I always go to OPEC with an open mind ... We know what Nigeria's interests are. We want to be able to meet our budgetary requirements for 2009," Ajumogobia said.
"We are realistic as to what the price will be. I want to think that given the scenario of where we are now, $80 will be comfortable and we will not have to worry if the oil price is within that range," he said.
But he said a cut in Nigeria's own production was not in its best interest as it needed as much oil revenue as it could get.
Nigeria, the world's eighth biggest oil exporter, is expected to ship an average of 1.89 million barrels per day in October, according to export programs cited by traders.
Ajumogobia confirmed that Nigeria had lowered the benchmark oil price in its draft 2009 budget, due to go before parliament in the coming days, to $45 per barrel from an initial $62.5.
Economists say the adjustment will cut budgeted oil revenue by more than 30 percent next year.
