Money and BusinessNationalnews

Libya expects exemption from OPEC production cuts

The Address | Benghazi – Libya

ABU DHABI – The AddreLibya hopes to receive an exemption from possible production curbs by Opec and allies, as it works to raise its own output capacity levels to two million barrels per day by 2022, the head of the country’s state producer said.

“Opec and non-Opec [producers] for the last two years understood very well the Libyan situation and they gave us full support to keep our production,” Mustafa Sanalla, chairman of Libya’s National Oil Corporation told The National in an interview. “We are far, far from our quota in production and due to the uncertainty of the country, the security threat, due to under-investment, we have our own problems and they are supporting the NOC over the last two years.”

The support is expected to continue into next year, as Opec and allies are set to meet in Vienna in early December to discuss possible cuts to bolster prices, which plunged 25 per cent to $65 per barrel for Brent on Wednesday after rallying around $80 for much of the summer. At its latest joint ministerial monitoring committee meeting held in the UAE capital, Opec said it anticipated higher supply growth next year and would look to revise its current strategy of boosting production.

Earlier in 2016 the exporters’ group and allies undertook a pact to curb production to the tune of 1.8 million bpd through 2017, with exemptions granted to Libya, Nigeria as well as Iran, which had seen significant outages in output due to conflict and sanctions.

Mr Sanalla said raising output was key for Libya to continue to be on target and earn revenues.


Related Articles