Sunday, October 15, 2017

Future challenges for East Med energy - CYPRUS MAIL


October 15, 2017
Charles Ellinas

An international conference on the future of energy in the eastern Mediterranean held in Nicosia earlier this month had three main themes: global energy developments and their impact on the East Med; the oil and gas industry and the prospects for the region, and energy transition and renewables in the East Med.

Impact of global energy developments

The keynote presentation was made by Professor Jonathan Stern of Oxford University’s Institute of Energy Studies, who is a renowned expert in the global energy and gas industries. It was a forceful but sobering presentation setting the global scene. His opening statement was that the ‘good old days’ of the global gas sector are over. Industry liberalisation, increasing competition, short-term trading, the relentless advance of renewables, energy efficiency and carbon reduction policies are impacting future energy demand. The future for gas is uncertain due to competition from low carbon energy and Paris Climate Agreement commitments.

The rate of growth of energy, power and gas demand in Europe has declined since its peak in 2010. Low prices also mean that companies want guarantees for projects for at least 15 years – otherwise they do not invest. Russian gas penetration of Europe is increasing and low prices make it difficult for others to compete.

Friday, October 13, 2017

Two Oil Majors Submitted their Bid for the Lebanese Licensing Round - LEBANON GAS NEWS



13.10.2017

Total and ENI along with Novatek submitted in one consortium their bid in the First Lebanese Licensing Round.

The consortium submit its bid on two offshore blocks, 4 and 9.

Lebanon relaunched the licensing round for five offshore blocks (1, 4, 8, 9 and 10) in January after a three-year delay due to political paralysis.

The single bid is presently under evaluation by the Lebanese Petroleum administration, which will send its recommendation to the minister of energy Eng. Cesar Abi Khalil. The minister on its turn will relay it to the council of ministers for final approval.

Lebanon is hoping to make its first award by the end of the year.

Greek utility eyes greater LNG purchases in next 3 years due to higher demand - NAFTEMPORIKI / REUTERS

Friday, 13 October 2017 22:12
K. Deligiannis

Greece’s state-run natural gas supplier (DEPA) is eyeing purchases of greater quantities of liquefied natural gas (LNG) over the coming three-year period, a move attributed to growing demand in the country and the region.

The development could also mark the inaugural supply of LNG from North American providers.

The utility's board of directors this week approved a tender for LNG supplies, open to European and US companies.

According to figures released late last month by the natgas grid operator in the country, DESFA, and the independent statistics authority, LNG supplies to Greece in 2016 increased by 30.5 percent – deliveries and re-exported quantities – compared to 2015.

According to preliminary estimates for the current year, a 30-percent increase in LNG supplies is forecast.

Thursday, October 12, 2017

Shell plans to drill 63 wells in Egypt in 2018 - EGYPT TODAY

Thu, Oct. 12, 2017

CAIRO – 12 October 2017: Royal Dutch Shell planned to drill 63 wells in Egypt in 2018 at different geological structures in the Western Desert, Shell’s director Andrew Brown announced Thursday.

“This targets increasing oil and gas production volume in the Western Desert,” Brown added.

In a Thursday meeting with Prime Minister Sherif Ismail and Minister of Petroleum Tarek El-Molla, Brown explained that Shell’s projects in the next period include Phase 9b in the West Delta Deep Marine Concession with $1.6 billion in total investments.

Brown has also presented plans and recommendations of his company to increase investments in the oil and gas exploration and production.

In June, Shell said it plans to increase investments in oil and gas explorations in Egypt.

Bids on Lebanon offshore energy blocks close - REUTERS


OCTOBER 12, 2017 / 9:29 PM
Reporting by Angus McDowall & Lisa Barrington; editing by David Evans & Jonathan Oatis

BEIRUT (Reuters) - Lebanon’s Energy Minister Cesar Abi Khalil on Thursday said a tender had closed on a first round of offshore energy blocks, and told local media that two consortiums had submitted bids.

Greek firm Gastrade signs LNG deal with state-owned DEPA - REUTERS

OCTOBER 12, 2017 / 8:32 PM
Reporting by Angeliki Koutantou. Editing by Jane Merriman

ATHENS, Oct 12 (Reuters) - Greece’s state controlled natural gas firm DEPA signed a cooperation agreement on Thursday with natural gas company Gastrade to participate in the development of a liquified natural gas terminal in northern Greece, DEPA said.

Greece currently has one LNG terminal on an islet off Athens. Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupolis.

The project has been described as a ‘project of common interest’ by the European Union.

Wednesday, October 11, 2017

Blast at Tupras refinery in Turkey kills four - HYDROCARBON PROCESSING / REUTERS / DAILY SABAH


October/11/2017
Writing by Daren Butler; Editing by Dominic Evans

ISTANBUL (Reuters) — An explosion in a storage tank at a Tupras refinery in the western Turkish province of Izmir on Wednesday killed four people but had no impact on production, the company said.

Tupras said in a statement that the explosion occurred following maintenance work on Wednesday morning.

Television footage showed black smoke rising from the site of the blast.

DAILY SABAH, October 11, 2017

The refinery, operated by Turkey's only oil refiner in the Aliağa district, is the country's second-largest in terms of its annual processing capacity of 11 million tons.

Crucial decisions on gas find by end of 2018, says minister - CYPRUS MAIL


October 11, 2017
Andria Kades

Cyprus will take decisions over the monetisation of its natural gas reserves by the end of 2018 following explorations by Exxon Mobil and Qatar Petroleum consortium in Block 10, Energy Miniter Yiorgos Lakkotrypis said on Wednesday.

Speaking during a panel discussion at the Maritime Conference taking place in Limassol, Lakkotrypis said there will be a clearer picture next year, as the consortium will carry out two drillings in block 10 in the second half of 2018.

The new drilling activity comes after an exploration by French Total in block 11, which although did not reveal commercially viable gas reserves, proved that the geologic model, which led to the discovery of the giant Egyprian Gas field Zhor, “works for Cyprus” Lakkotrypis said.

“By the end of 2018 we will have concluded what I called exploration round 2.0 which started with the discovery of Zhor completed and that is the moment we will have a pretty good idea. That will be the moment when Cyprus will take its decision about monetisation,” he added.

Jordan’s Energy Minister looks to expand energy cooperation with Egypt - ENTERPRISE

Wednesday, 11 October 2017

Jordan’s Energy Minister Saleh Kharabsheh is in Egypt to discuss expanding energy cooperation. Along with Oil Minister Tarek El Molla, he attended the signing of two MoUs between Jordanian Egyptian Fajr for Natural Gas Transmission & Supply, Fajr Egypt, the Egyptian Natural Gas Company (Gasco), and Egypt Gas. 

The first agreement will see the establishment of a JV between the companies to operate oil and gas pipelines in Jordan, while the second pertains to feasibility studies on a number of natural gas grid development and expansion projects in Jordan, according to Al Mal

Kharabsheh also met with Electricity Minister Mohamed Shaker to discuss establishing a second power line connecting the electricity grids of both countries, a proposal Shaker welcomed.

Major oil pipeline between Iraq and Turkey to bypass Kurdish region - MIDDLE EAST MONITOR



October 11, 2017 at 2:16 am

Iraq and Turkey have intensified their efforts to isolate independent seeking Kurds by bypassing the region while re-opening a disused oil pipeline between the two countries.

The central government in Iraq wants to restore one of its oldest pipelines that run from Kirkuk in the Kurdish region of Iraq to Mediterranean port of Ceyhan in Southern Turkey. The pipeline was damaged in areas occupied by Daesh until Iraqi forces regained control of the region late last year.

Iraq’s oil minister, Abdul Karim Luaibi Bahedh announced in a statement today, repairs to the pipeline, which was once a key artery of Iraq’s oil export.

Monday, October 9, 2017

Eni looks to Crete to further East Mediterranean exploration - OIL & GAS JOURNAL


HOUSTON, Oct. 9 2017
Tayvis Dunnahoe
OGJ Exploration Editor


Italy’s Eni SPA is eyeing acreage near Crete as Greece works toward opening its offshore to oil and gas development. According to Greece’s Kathimerini web site, Eni is taking the likely step from its foothold on the neighboring Cypriot market to expand its scope in the southeastern Mediterranean and the Greek market.

The company is expected to face strong competition with the consortium of Hellenic Petroleum, Total SA, and Edison considering the same area for development. Competition will strengthen Greece’s negotiating position ahead of signing concession contracts (OGJ, Aug. 27, 2017, p. 34).

Rosneft Closes the Deal to Acquire a 30% Stake in Zohr Gas Field - ROSNEFT


09 October

Rosneft closed the deal to acquire a 30% stake in the concessions agreement for the development of Zohr field, the largest gas field in the Mediterranean Sea, from Italian company Eni S.p.A.

The cost of Rosneft stake acquisition is USD 1.125 bln. The Company also refunded its share in past project costs to Eni.

The Company becomes a participant of the project to develop the largest deepwater gas field offshore Egypt jointly with other world majors and strategic partners of Rosneft – Eni (60% stake) and BP (10% stake).

EGAS to issue new oil and gas exploration tenders in 2018 - ENTERPRISE

Monday, 9 October 2017

EGAS plans to issue new oil and gas exploration tenders in 2018, an unnamed company official tells Al Shorouk.  


We had said last month that EGAS was planning to issue global tenders for the West Mediterranean concession once Norwegian firm PGS releases the results of its seismic survey for the area before the end of FY2017-18.

Learn more about EGAS.

Sunday, October 8, 2017

Six lenders to secure EGP 2.3bn for GPC - AL MAL


Sunday 08 October 2017 12:11 PM
Moahmed Salem
Egypt’s General Petroleum Company (GPC) has signed a financing agreement with a banking alliance made up of 6 local lenders to obtain a loan of EGP 2.3bn to finance oil and gas exploration and drilling operations.

The vice chairman of the National Bank of Egypt (NBE) Yehia Abul Fotooh said that the banking alliance arranging the deal includes NBE, Banque Misr, Arab African International Bank, Societe Arabe Internationale De Banque (SAIB), EG Bank and Union National Bank – Egypt.

Friday, October 6, 2017

Eni bets big on Zohr explorer finding new treasure - REUTERS

Eni's Chief Exploration Officer Luca Bertelli poses at the headquarters in San Donato near Milan, Italy, September 15, 2017. REUTERS/Alberto Lingria


OCTOBER 6, 2017 / 12:12 PM
Stephen Jewkes

MILAN (Reuters) - Italian oil major Eni (ENI.MI) is betting billions on Luca Bertelli being able to achieve something he’s been doing since he was nine years old: spotting things others overlook.

The geologist, who heads Eni’s exploration team, began collecting rocks as a boy growing up in Tuscany, developing a curious eye that eventually led him to discover two of the world’s biggest gas fields this century.

His latest success, the Zohr field off Egypt, sits in an area that Royal Dutch Shell (RDSa.L) pored over for years before Bertelli persuaded his boss to embark on a drilling program that turned up the Mediterranean’s largest gas discovery.

Thursday, October 5, 2017

Zohr to start production in December: Eni - EGYPT TODAY / REUTERS

Technicians on Zohr's platform (Source: ENI)
Thu, Oct. 5, 2017

CAIRO – 5 October 2017: Egypt’s giant gas field Zohr will start production in December, the project’s developer Eni’s CEO Claudio Descalzi said Thursday, Reuters reported.

Zohr is the largest natural gas field found in the Mediterranean and was discovered in 2015 by Eni. The field has an area of 100 square meters at a depth of 1,450 meters.

Investing around $10 billion in the project, Eni is estimating total output of the field to be approximately 30 trillion cubic feet of gas.

The field will start production through three phases. The first phase will see an output of one billion cubic feet per day (ft2). When all seven fields are complete by 2019, this amount will increase to 2.7 billion ft2.

The field is expected to secure Egypt’s domestic needs of gas after it has become a net importer of gas following a cut in production after the January revolution.

Oil discovery at Rabul 2 Well, West Gharib Concession - SDX ENERGY


5 October 2017 

Egypt SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that an oil discovery has been made by the Rabul 2 Well in the West Gharib Concession in Egypt (SDX 50% Working Interest & Joint Operator). 

The well encountered approximately 101.5 feet of net heavy oil pay across the Yusr and Bakr sand formations, with an average porosity of 20%. Evaluation is ongoing, after which the Company expects that the well will be completed as a producer in the Bakr and connected to the central processing facilities at Meseda. 

The Rabul 2 well is the last of the commitment wells in the West Gharib concession and was drilled as an offset to the first commitment well Rabul 1, which was drilled in July 2017. Rabul 1 encountered 14.5 feet of net heavy oil pay with an average porosity of 21.2% in the Yusr sands and was subsequently completed as an oil producer in the Yusr sands. 

Wednesday, October 4, 2017

Libyan Oil Output Is Set to Rebound as Biggest Field Restarts - RIGZONE / BLOOMBERG


Wednesday, October 04, 2017Salma El Wardany & Saleh Sarrar

(Bloomberg) -- Libya’s oil output, hampered by sporadic shutdowns at fields and ports, is on track to resume its recovery as the OPEC nation’s biggest crude deposit started pumping after a three-day forced halt.

The Sharara field re-opened on Wednesday and is restoring production, the state producer National Oil Corp. said on its website. NOC lifted force majeure at the field as of Wednesday and is able to resume delivering Sharara crude to customers, it said in an emailed statement. NOC Chairman Mustafa Sanalla said Monday on Libya TV that the nation’s daily output will reach 1 million barrels within days of the field’s re-opening.

Distribution of Rigs in Egypt - EGYPT OIL & GAS




Monday, October 2, 2017

Gazprom and Delek sign Memorandum to cooperate in Israeli NGV market - GAZPROM


October 2, 2017, 15:00

Gazprom and Delek Drilling LP signed a Memorandum of Understanding. According to the document, the parties will jointly examine the possibilities of using natural gas as a fuel for vehicles (road, rail and water transport) and special equipment (agricultural, material-handling and other equipment) in Israel.

The Memorandum was signed pursuant to the Memorandum of Understanding inked on June 7, 2016, between the Ministry of Energy of the Russian Federation and the Ministry of National Infrastructure, Energy and Water Resources of the State of Israel. The document provides for the establishment of a joint working group.

GlobalConnect completes acquisition of 25% interest in Abu Sennan Concession in Western Desert - ENERGY EGYPT / GLOBAL CONNECT


October 2, 2017

GlobalConnect Ltd., a newly established Oil and Gas Exploration and Production company with focus on MENA (Middle East and North Africa) region, has announced the final approval of Egypt government of its acquisition of 25% (twenty five percent) Participating Interest in the Concession Agreement for the Petroleum Exploration and Exploitation in Abu Sennan Area of Egypt Western Desert.

Farmout Agreement (FOA) was executed on December 15th, 2016, between Kuwait Energy plc (“Kuwait Energy”) and GlobalConnect with effective date of December 31st, 2016. FOA was signed by Sherif Foda – Founder and Chairman of GlobalConnect and Sara Akbar – CEO of Kuwait Energy.

Upon this final approval of Egypt government, GlobalConnect can officially assume its duties and responsibilities as full partner in the Abu Sennan concession.

Sunday, October 1, 2017

El-Molla directs EGPC, Ganope, EGAS to intensify oil exploration - DAILY NEWS EGYPT

1 October 2017
Mohamed Adel

Minister of Petroleum Tarek El-Molla directed the Egyptian General Petroleum Corporation (EGPC), South Valley Egyptian Petroleum Holding Company (Ganope), and the Egyptian Natural Gas Holding Company (EGAS) to focus on offering areas for research and drilling for oil in the coming tenders, as to increase production rates and curb reliance on imports.

A source in the sector told Daily News Egypt that EGPC has been tasked with collecting data and information about the untapped concession areas in the Western Desert and the Gulf of Suez.

He explained that Egypt needs to increase crude oil output, having been fixed for several years at an average of 650,000-700,000 barrels, against a growing demand.

Saturday, September 30, 2017

Massive shale gas reserve found in Turkey’s northwestern Bursa province - DAILY SABAH


30.9.2017

A massive reserve of shale gas has been discovered in Turkey's northwestern Bursa province, the head of the Turkish Mining Development Foundation said.

Speaking at the International Energy Raw Materials and Energy Summit (INERMA), Güven Önal said on Saturday that the Göynük district of Bursa is home to 'a few billion tons' of shale gas.

Önal said that the Directorate of Mineral Research and Exploration is still researching the reserves which include layers of shale gas and hydrocarbon.

Friday, September 29, 2017

Russian Gas Deliveries to Turkey Soar in September - MOSCOW TIMES / BNE INTELLINEWS

Sep 29, 2017 — 15:24
Ben Aris


Putin’s ultimate goal seems to be to win over Turkey from the West's sphere of influence

Russo-Turkish relations are back in rude health – almost. And nowhere is that clearer than in Russian gas deliveries to Turkey. They have soared in the past month.

Gazprom will set a record for natural gas deliveries to Turkey this year with deliveries having already surged 48 percent in September from a year earlier, Gazprom CEO Alexei Miller told reporters on Sept. 28.

"We are happy that deliveries of gas to Turkey are growing this year. Comparing the period from Jan. 1 to date with the like period of 2016, supplies to the Turkish market rose 24.3 percent," Miller was cited by the state-run news agency TASS as saying. "It means Gazprom will probably set an all-time high record of gas supplies to the market of Turkey as of 2017 year-end."

Energy ministry aims for LNG by 2020 - CYPRUS MAIL


September 29, 2017
Evie Andreou

The government aims to bring liquefied natural gas (LNG) to Cyprus by 2020 for cheaper and cleaner energy, the Permanent Secretary of the Ministry of Energy Stelios Himonas said on Friday.

Speaking at a press conference in Limassol, on LNG, Himonas said that studies carried out under two programmes will contribute to the realization of the country’s energy goals and the arrival of natural gas in Cyprus.

Thursday, September 28, 2017

Turkey backs Iraq on oil after Kurdish vote - OIL & GAS JOURNAL



HOUSTON, Sept. 28, 2017

The government of Turkey said it will deal exclusively with the Iraqi government on oil exports after voters in the semiautonomous Kurdistan Region of Iraq supported independence in a controversial referendum.

Assurance from Turkish Prime Minister Binali Yildirim of support for Baghdad followed threats before the vote to close the pipeline that carries crude oil from Iraqi Kurdistan across Turkey to Ceyhan on the Mediterranean.

About 72% of eligible voters participated in the Sept. 25 referendum, which supported negotiations leading to separation from Iraq by nearly 93%.

Yildirim told Iraqi Prime Minister Haidar al-Abadi in a Sept. 28 telephone conversation that Turkey would deal only with Iraq on exports and that Iraq had “support of his country for all decisions,” according to press reports.

Wednesday, September 27, 2017

Gas flow from Tamar field resumes - GLOBES

27 Sep, 2017 11:29
Sonia Gorodeisky

The Israel Electric Corp. and private electricity producers are counting the cost of the six day halt in natural gas supplies.
After being shut down for six days, the supply of natural gas from the Tamar reservoir was resumed this morning, and the platform's normal activity is taking place, the Tamar partnership announced today.

The reservoir is currently supplying half of the maximum amount it produces at normal times. The amount of gas flowing from the platform to the shore will be increased gradually over the next 24 hours until it reaches the maximum amount, while maintenance work is continuing at the same time.

Last Thursday, with the beginning of planned maintenance work on the Tamar reservoir, a malfunction occurred that caused a shutdown of the platform and a halt in the flow of gas to the economy. A crack was discovered in one of the pipes connected to the ventilation pipe, requiring a shutdown of the platform pending a complete repair of the malfunction. The option of soldering the crack was considered, but Noble Energy decided to replace the entire damaged part, a safer, but lengthier, option. The cracked part was specially produced in Houston, Texas and flown to Israel.

Cyprus Presidential Candidate: We could build a pipeline from Aphrodite to Damietta- EGYPT OIL & GAS


Wednesday, 27th September 2017
Mariana Somensi


Academics from Egypt, Greece, and Cyprus promoted a roundtable in Cairo on September 25th to discuss ways of enhancing the countries’ cooperation in the natural gas market. The discussion, which tackled innovative ideas to translate the tripartite partnership into synergies and common projects, counted with the special participation of the presidential candidate and president of the Democratic Party of Cyprus, Nicholas Papadopoulos, Egypt Oil & Gas reports.

Tuesday, September 26, 2017

Egypt- Petroleum Minister looks into expanding Midor refinery with Italian Technip - MENAFN - DAILY NEWS EGYPT

September 26, 2017 2:15:08 PM 

Minister of Petroleum Tarek El Molla and Chairperson of Technip Marco Villa, an Italian project management and construction company, looked into the expansions of the Middle East Oil Refinery (Midor) and the project to establish a new complex for fuel oil hydrogenic cracking in the Assiut petroleum refinery, according to a report issued by the Ministry of Petroleum on Tuesday.

The expansion project of Midor aims to increase its refining capacity from 115,000 barrels to 175,000 barrels per day.

The minister pointed out that it is necessary to adhere to the schedule agreed upon for the implementation of the two projects as well as placing them on the production map for their significance in securing the supply of fuel to the local market and in limiting imports.

Monday, September 25, 2017

Egypt inks 83 oil, gas deals with foreign firms in 4 yrs: Molla - EGYPT TODAY

Mon, Sep. 25, 2017

CAIRO – 25 September 2017: Foreign firms have entered in 83 agreements for oil and gas exploration and production with the Ministry of Petroleum since the June 30 Revolution of 2013, Minister of Petroleum Tarek el-Mola said.

During the minister’s meeting with the French Chamber of Commerce in Egypt, Mola highlighted that this number is a record in the history of the petroleum industry in Egypt.

The confidence of foreign investors in the Egyptian economy increased after seeing the economic reforms carried out by the government, the minister said.

Mola added that the new strategy for developing mineral resources was prepared by the Ministry of Petroleum with the aim of benefitting the Egyptian economy as much as possible from these resources.

Sunday, September 24, 2017

Construction of TANAP's Marmara leg begins - DAILY SABAH


September 24, 2017

The 19 kilometer-long sea section - the most important leg of the Trans Anatolian Natural Gas Pipeline Project (TANAP), which will carry Azeri natural gas to Europe via Turkey - is being built in the Marmara Sea.

Natural gas pipes are being laid at the bottom of the sea by a specially equipped vessel. The 153-meter-long Panamanian vessel, named "Sapurakencana 1200" and weighing 32,504 gross tons, has started laying pipes on the shore of Kemer village in the district of Biga in Çanakkale Province. Thus, the first sea connection of TANAP on land has started.

Tamar partners say gas shutdown will not have major sales impact - REUTERS


SEPTEMBER 24, 2017 / 10:03 AMReporting by Ari Rabinovitch; editing by Jason Neely

JERUSALEM, Sept 24 (Reuters) - A shutdown at Israel’s Tamar natural gas field caused by a cracked pipe is not expected to have a significant impact on quarterly revenue, and the problem will likely be resolved this week, the partners behind the project said on Sunday.

The stoppage, however, will take a toll on the country’s power stations, which have been forced to turn to more expensive fuels to generate electricity.

Saturday, September 23, 2017

Egypt's Zohr gas field to yield 500 mln cubic feet daily by end-2017 - REUTERS AFRICA


SEPTEMBER 23, 2017 / 4:32 PM
Reuters Staff

CAIRO, Sept 23 (Reuters) - Egypt’s giant new offshore Zohr gas field in the Mediterranean is set to be producing 500 million cubic feet per day by the end of 2017, Prime Minister Sherif Ismail said on Saturday.

The country imports peak at 10-12 shipments of natural gas per month, Ismail told reporters at the General Authority For Investment, adding that imports should decline significantly once the field starts producing.

Discovered in 2015 by Italy’s Eni with an estimated 30 trillion cubic feet of gas, the Zohr field is due to start producing in December.

Friday, September 22, 2017

LNG production from Giza, Fayoum fields to reach 500 mln cfpd by end of 2018 - AHRAM ONLINE


Friday 22 Sep 2017

Egypt’s Minister of Petroleum Tarek El-Molla announced on Friday that liquified natual gas (LNG) production from the Giza and Fayoum fields will reach 500-700 million cubic feet per day (cfpd) by the end of 2018.

El-Molla’s statement came during the seventh regular meeting of the committee responsible for following progress of the second phase of the West Delta gas fields on Friday.

Earlier this week, the minister revealed that Egypt is planning to reduce its LNG imports in the fiscal year 2017-18, thanks to expected production from the Zohr gas field, with imports restricted to 80 shipments worth $1.8 billion.

OPEC’s ‘Problem Children’ Are Holding Down Oil Prices - THE WALL STREET JOURNAL

Monthly crude-oil production, percentage above or below October 2016 levels

Sept. 22, 2017 12:33 p.m. ET
Benoit Faucon and Summer Said

Rising output in strife-torn Libya and Nigeria is threatening the cartel’s bid to cut off oil supplies and balance the market
VIENNA—The Organization of the Petroleum Exporting Countries is scrambling to contain output from its strife-torn members Libya and Nigeria, where surging production could threaten to derail the oil cartel’s efforts to withhold crude supply and raise its price.

Libya and Nigeria were exempt from OPEC’s agreement last year to join with Russia and other producers to cut about 2% of the world’s oil production. The countries’ oil industries at the time were crippled by civil unrest and weren’t expected to recover soon.

Both have since struck deals with militants, allowing the spigots to be turned on again.