Too early to reduce oil production caps on Nigeria, Libya – OPEC

Mohammed Barkindo
Mohammed Barkindo

The Organisation of Petroleum Exporting Countries, OPEC, on Thursday said it is too early to determine when production caps should be imposed on Nigeria and Libya.

The OPEC Secretary-General, Mohammad Barkindo, said this on Thursday at an economic forum in Russia’s St Petersburg.

Nigeria and Libya had earlier been exempted from an OPEC and non-OPEC producing members’ agreement to extend the crude oil production cut by another nine months to allow further rebalancing of the market.

The decision took place in May after the 2nd ministerial meeting of the two groups at the headquarters of OPEC in Vienna, Austria.

The President of the OPEC Conference and minister of energy of Saudi Arabia, Khalid Al- Falih, had said that the extension was necessary to further consolidate the gain by all stakeholders and the period would allow the market to achieve the five year average for stocks.

“The two countries (Nigeria and Libya) are still well below the expected output quota, it is in our interest to be friendly and brotherly, and exempt them so that they get the maximum revenue from the amount produced. It’s not appropriate to discuss any cut for them anytime soon”, the President of OPEC conference had said.

In a chat with Reuters on Thursday, Mr. Barkindo, OPEC Secretary-General, said the two countries have challenges to resolve.

“Too early to say when production caps could be imposed on Libya and Nigeria, they have a lot of issues to solve,” he told Reuters.

On oil price decline, the OPEC scribe said that the cartel has no issues with people taking position, adding that the producers’ group has decided to focus on the fundamentals.

“We have no issues with people taking positions in the market,” he said, adding that “we are focusing on fundamentals.”

Meanwhile, Mr. Barkindo also disclosed that the Russian Prime Minister, Dmitry Medvedev, told him Russia was fully committed to complying with output cuts.


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