Libya seeks cut in OPEC production

Updated 08 April 2015

Libya seeks cut in OPEC production

LONDON: OPEC should change course and cut oil supply by 800,000 barrels per day (bpd) or more to prevent an expected return of Iranian exports from weighing on prices, Libya’s OPEC governor said.
The comments underline how the halving of oil prices from $115 a barrel in June on global oversupply is hurting OPEC’s less wealthy members outside the Gulf and suggests the 12-nation group remains divided over the impact of its 2014 policy shift to defend market share, not prices.
“OPEC members, as a unit, need to re-evaluate their strategies,” Samir Kamal, Libya’s OPEC governor and head of planning at the North African country’s oil ministry, told Reuters by e-mail.
They “need to reach an agreement to bring down the production levels by at least 800,000 barrels a day, especially now that an agreement has been reached with Iran which is expected to increase its production,” he said.
A framework deal announced last week to curb Iran’s nuclear work could eventually allow Tehran to boost oil exports, which have been cut by almost half since 2012 due to Western sanctions.
Libya is struggling with two rival governments. Kamal represents Libya on OPEC’s board of governors, a body that influences but does not decide OPEC policy.
When the producer group last met in November, Libya was among member countries calling for a cut in production.
OPEC meets again on June 5 to set policy. Although they did not oppose the group’s no-cut decision of last year, other non-Gulf OPEC members such as Venezuela and Iran have expressed misgivings about it and sought supply reductions.
A group of 18 African oil producers — many of which are not OPEC members — is lobbying for output curbs to boost prices that it says have fallen to levels that threaten to spark social unrest.


Poland to stop importing gas from Russian state provider

Updated 17 min 31 sec ago

Poland to stop importing gas from Russian state provider

  • Poland has been working to reduce their dependence on Russian energy sources
  • The Polish company will terminate the contract as of Dec. 31, 2022
WARSAW: Poland’s state gas company said Friday it has notified Russia’s Gazprom that it will not extend a long-term deal on gas imports when it expires in three years.
The announcement comes as Poland has been working to reduce its dependence on Russian energy sources, which Moscow has sometimes used as a tool of political pressure on its partners.
The efforts to reduce dependency include striking long-term contracts for deliveries of liquefied natural gas from the United States, Qatar and other countries, as well as developing a new pipeline with Norway for deliveries from the North Sea.
The Polish company, PGNiG, said that, in line with the provisions of the deal, it had sent Gazprom, which is controlled by the Russian state, notice that it will terminate the contract as of Dec. 31, 2022. It said Poland will continue to have enough energy after that date.
Poland has repeatedly said that the financial terms of the Gazprom contract were unfavorable and that it was paying a higher price than others in Europe.
Poland uses some 14 billion cubic meters of gas a year. Under the contract with Gazprom it was obliged to import some 10 billion cubic meters of gas from Gazprom per year.