Libya insists on retaining its Opec waiver

Libyan state-owned NOC's head Mustafa Sanalla said the country should retain its exemption from the Opec and non-Opec production restraint deal.

"We are very keen to keep our production," Sanalla said in Vienna today ahead of a series of meetings between producing nations. "Libya still has its own ceiling unfortunately because of political problems that we sometimes have."

Asked if Libya supported a proposal that is being floated by some members to deepen production cuts by 400,000 b/d to 1.6mn b/d, Sanalla largely focused on Tripoli's own position.

"To cut? Libya, no. We shall keep our own production. We have our own ceiling unfortunately. We need every penny," he said.

He said Libyan output is in a 1.25mn-1.3mn b/d range. Argus estimated Libyan production at 1.15mn b/d for October.

Sanalla has consistently defended Libya's claim to an exemption from the production initiative, which it earned because of internal security concerns. A battle for control of Tripoli between the Libyan National Army (LNA) and the UN-backed Government of National Accord (GNA) has been going on since April. It has yet to severely affect Libya's crude output, but has obstructed transport of fuel and gasoline supplies.

The 130,000 b/d capacity El Feel field was recently affected. The field was shut for a day on 27 November, and production there is now around 73,000-75,000 b/d, according to Sanalla.

NOC has plans to increase crude output to 1.5mn b/d next year and 2.1mn b/d by 2024. It restarted a 60,000 b/d secondary crude distillation unit (CDU) at the 120,000 b/d Zawia refinery last month. This should bring runs at Zawia — Libya's largest working refinery — back to nameplate capacity. It regularly operated at as low as half that level intermittently since the summer. The refinery is the main recipient of supplies from the 300,000 b/d El Sharara field.

By Ruxandra Iordache