Tuesday, 11 July 2017

Russia says Libya, Nigeria may attend OPEC, non-OPEC July meeting

In Oil & Companies News 11/07/2017

Libya and Nigeria may attend a joint meeting between OPEC and non-OPEC this month, Russia’s energy minister said on Monday, as oil producers look for ways to cap rising production to help support oil prices.
Both nations have boosted production since they were exempted from an OPEC-led deal to cut output, weighing on global prices. This has prompted talk among producers about including them in the pact.
“We have spoken to (OPEC Secretary General Mohammad) Barkindo and in the next two weeks there will be conversations with them (Libya and Nigeria) and possibly we will invite them to the technical summit,” Novak told reporters on the sidelines of an industry conference in Istanbul.
Six ministers from OPEC and non-OPEC nations including Kuwait, Venezuela, Algeria, Saudi Arabia, Russia and Oman will meet on July 24 in St Petersburg, Russia, to discuss the current situation in the oil market.
This group, called the Joint Ministerial Monitoring Committee, could recommend expanding the pact to the wider group, which holds its next meeting in November.
The ministerial talks will be preceded by a meeting of a technical committee involving all OPEC and non-OPEC members currently participating in the oil output-cutting deal.
Both Nigeria and Libya were given exemptions to the supply cut, under which OPEC, Russia and other non-OPEC producers are reducing their output by about 1.8 million barrels per day, because their output has been curbed by conflict.
OPEC delegates have said bringing Nigeria or Libya into the production pact would likely focus on capping their output, rather than asking them to cut their supply so soon after it had recovered from involuntary curbs.
Nigeria’s oil minister Emmanuel Ibe Kachikwu has said that Nigeria was not opposed in principle to joining OPEC’s production cap, but would have to wait and see if production returned to acceptable levels.
The minister is not planning to attend the Russian talks because he already has another ministerial-level meeting scheduled at home in Abuja, a source familiar with his schedule said.
In comments to Reuters on Monday, the head of Libya’s National Oil Corporation did not indicate any willingness to cap output yet, saying Libya’s humanitarian problems must be considered in any talks on the subject.
NOC Chairman Mustafa Sanalla added Libya could assist with efforts to stabilise the market by informing OPEC about its plans to restore production.

Source: Reuters (Reporting by Olesya Astakhova and Alex Lawler in London; editing by Jason Neely)