Vienna (Platts)--28 Nov 2017 1240 pm EST/1740 GMT
Libya and Nigeria can expect to face growing pressure from their OPEC counterparts to end their exemptions from production cuts and accept an output quota, when ministers meet Thursday for a closely watched summit.
Output caps could be discussed for both countries: sources
Uncertain Libyan outlook may cushion it from getting a quota
Condensate question helps keep Nigeria output below 1.8 mil b/d
While the production outlooks for both countries remain hazy due to political, security and technical challenges, voices have been growing louder within OPEC that their output has recovered sufficiently to join in their market rebalancing efforts, sources told S&P Global Platts.
"I think both countries will be discussed," an OPEC source told Platts, but he declined to say whether members would insist on imposing quotas.
One option being discussed is a "loose" quota that would be triggered if production in either country rises to a certain level, while another option would be to place a quota right at or above each country's production target, to at least symbolize that they are willing to accept a cap, other sources and analysts said.
But it is entirely possible that both countries' exemptions will be maintained, as they have been vehemently opposed to any output restrictions while they recover from militancy, the sources said.
Officials from Libya and Nigeria did not respond to requests for comment.
OPEC granted Libya and Nigeria their exemptions when the 1.8 million b/d production cut agreement with 10 non-OPEC countries was negotiated late last year, as the two African nations dealt with internal strife and civil unrest that had targeted their oil infrastructure.
But both countries have seen sharp rises in production this year, partially undoing the impact of OPEC's collective supply reductions.
