Libya will present its output plans at the OPEC/non-OPEC technical committee meeting next week, led by the chairman of state-owned National Oil Corporation, Mustafa Sanalla.

OPEC Outlook podcast: Libya and Nigeria exempt from OPEC cuts, but not from speculation over their futures

Sanalla said in a statement Tuesday that he will take “this opportunity to share with the committee the factors enabling and constraining Libya’s production recovery.”

OPEC has been in a quandary in the last few months, as the effectiveness of its cuts are being blunted by the sharp rise in production from Nigeria and Libya, two members of the organization that were excluded from the original output deal in November.

Article continues below…

The two exempted countries have been invited to explain their production outlook, as the committee meets to review compliance with the deal and assess market conditions.

The OPEC/non-OPEC monitoring committee meetings will take place next week in St. Petersburg, with a technical meeting on July 22 followed by a ministerial-level meeting on July 24.

“I will consult with significant Libyan decision-makers before I leave and hope to present a unified Libyan position in St. Petersburg that will show we can act together in the national interest,” Sanalla said.

Last week, Sanalla was quoted as saying that Libya’s humanitarian situation should be taken into account when considering whether the country is required to rein in its production.

NO CONCRETE PLANS

OPEC ministers do not have any concrete plans for Libya and Nigeria to commit to the group’s wider production caps at next week’s committee meetings, a senior source close to OPEC told S&P Global Platts.

Nigerian oil minister Emmanuel Kachikwu said last week he would not attend the July 24 meeting due to a schedule conflict.

“While Nigeria noted the recovery of its oil production in recent weeks, the upsurges remained fragile, [ensuring] that Nigeria will continue to monitor developments,” the ministry said.

The statement didn’t indicate whether Nigeria would send any representatives in Kachikwu’s stead.

Libyan oil production is now at over a four-year high of just above 1 million b/d, according to Platts calculations, boosted by the return of several fields that had been shut-in by civil strife.

OPEC’s crude output hit a six-month high of 32.49 million b/d in June, according to a Platts survey, as higher flows from Nigeria and Libya more than offset the efforts of other members to cut output volumes.

The combined output of Libya and Nigeria is now about 380,000 b/d above their October level, the benchmark from which the OPEC/non-OPEC cuts were determined.

–Eklavya Gupte, eklavya.gupte@spglobal.com
–Edited by James Leech, james.leech@spglobal.com

Source link

NO COMMENTS

LEAVE A REPLY