OPEC Invites Libya, Nigeria to Discuss Crude Output Cuts

Libya and Nigeria, the two OPEC members exempt from the current oil production cut deal, have been invited to participate in the producer group's latest ministerial committee meeting on Sept. 22.

The two countries have been asked to attend the meeting in Vienna to review the latest developments in their oil sectors, Kuwait's OPEC Governor Haitham al-Ghais was reported as saying by Platts.

"Nigeria's oil production, including crude oil and condensates, is currently at around 2.2-2.3 million barrels per day, including about 300,000 to 400,000 bpd of condensates," oil minister, Emmanuel Kachikwu, said last week.

Libyan output had also recovered to reach an average of 990,000 bpd in July, its highest level in three years, up 180,000 bpd in June, according to the latest Platts OPEC survey.

This was before the closure of three fields—the 300,000-bpd Sharara, 90,000-bpd El-Fil and 10,000-bpd Hamada field, shutting in around 360,000 bpd of output since the middle of August.

"OPEC will consult with them to identify their plans," Ghais said.

The production cut agreement, which began on January 1, calls on OPEC's 14 members along with several non-OPEC countries, led by Russia, to cut a combined 1.8 million bpd in output through March.

The group will hold a technical committee meeting on September 20, looking at the continued effects of US shale oil on the global market, and the impact of Hurricane Harvey.

"The amount of production affected by the hurricane is estimated at 700,000 bpd, which may strengthen the status of the market," Ghais said.

"US production had increased by 500,000 bpd so far in 2017, compared with 2016."

This will be followed on September 22 by a committee overseeing the deal, composed of ministers from Kuwait, Russia, Venezuela, Algeria, Oman and Saudi Arabia. Sources have told Platts that Saudi Arabia and Russia are seeking to extend the deal for a further three months to June, to demonstrate their commitment to market management and dampen fears that the producers will return to a market-share battle as soon as the deal expires.

source: Financial Tribune