Libya and Nigeria’s exemptions from the production-cut agreements could be questioned at tomorrow’s meeting between OPEC and some non-OPEC oil producers, sources told Platts.
The two OPEC members have been exempted from cuts imposed by the agreement between OPEC and a number of other global oil-producing nations to cut production due to their internal instability.
With production rising in both countries, however, some have questioned extending the extension.
In September, the Iranian oil minister said that OPEC needed to address “the production of Libya and Nigeria,” according to Bloomberg.
One idea being considered is a “loose” quota that would only kick in if the country’s production rose above a set level, sources told Platts. A second option would be to place a symbolic production cap above the countries’ production target.
Libya’s oil industry is now producing approximately 1 million b/d, up from lows of under 200,000 recorded in 2016, Platts reports
Nigeria’s production, for its part, has hovered around 1.74 million b/d this year, according to Platts. In August, it hit 1.86 million b/d, but has since receded.
In September, Algeria declared a self-imposed cap of 1.8 million b/d. That cap, however, excludes the Agbami grade, which Nigeria considers a condensate, according to Platts.