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OPEC invites Libya, Nigeria to committee meeting Sep 22

Dubai (Platts)--4 Sep 2017 947 am EDT/1347 GMT


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 September 22.

The two countries have been asked to attend the meeting in Vienna to identify the latest developments in their oil sectors, Kuwait's OPEC governor, Haitham al-Ghais told Al-Rai newspaper Sunday.

Nigeria's oil production, including crude oil and condensates, is currently at around 2.2 million to 2.3 million b/d, including about 300,000 to 400,000 b/d of condensates, oil minister Emmanuel Kachikwu said Thursday.

Libyan output had also recovered to reach an average of 990,000 b/d in July, its highest level in three years, up 180,000 b/d in June, according to the latest S&P Global Platts OPEC survey.

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

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

The production cut agreement, which began January 1, calls on OPEC's 14 members along with 10 non-OPEC countries, led by Russia, to cut a combined 1.8 million b/d 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 b/d, which may strengthen the status of the market", Ghais said. US production had increased by 500,000 b/d so far in 2017, compared with 2016, he added.

This will be followed 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.

--Adal Mirza, adal.mirza@spglobal.com
--Edited by Maurice Geller, maurice,geller@spglobal.com




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