Libya Oil Exports Resume from Brega

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Libya Oil Exports Resume from Brega
Released:  27/08/20132013-08-27
Word count:  220

Oil exports from the Libyan port of Marsa al Brega have resumed after a force majeure was lifted as protesters ended their blockade of the terminal, the deputy oil minister said Monday.

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"A few tankers have left the port after we lifted the force majeure on Aug. 22," Omar Shakmak told Dow Jones Newswires. "The port is now operating as normal and at full capacity," he said. Brega, with a capacity of around 90,000 barrels a day, is one of the four ports affected by the force majeure, declared after protests caused the facilities to be shut at the end of July, as workers demanded the payment of wages, as well as higher salaries or more jobs. However, officials said the situation was more precarious, with armed guards trying to sell oil without government approval.

The strikes in eastern and central Libyan ports had effectively shut down shipments from terminals there, which account for more than half of Libya's$60 billion of oil exports annually.

Es Sider, the largest of Libya's oil terminals with a 350,000 barrel-a-day capacity, as well as Ras Lanuf and Zueitina in eastern Libya remain closed. Storage facilities in the country, a member of the Organization of the Petroleum Exporting Countries, have filled with crude, crimping any new production. According to data supplied by the oil ministry, Libya's output fell in the first half of August to about 500,000 barrels a day -- about one-third of the highs reached last summer and the lowest since just after Libya's civil war ended in late 2011.
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News Releases
Released:  31/10/20142014-10-31
Word count:  114

Khartoum - Sudan has agreed with the Libyan government to construct camps and prefabricated buildings for the Libyan army, Chairman of the Sudanese Employers Union, Saud Al-Birair said on Wednesday.

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Sudan vision daily
The project comes in addition to Sudan’s participation in the reconstruction of Libya. Libyan Prime Minister, Abdulla al Thani, while meeting last Tuesday with the employers union commended Sudan’s cooperation with his country in the field of building constructions and exporting meat.

The Sudanese Minister of Finance and the National Economy, Badr-Eddin Mahmoud Abbas, who attended the meeting, said cooperation with Libya in the long and short-term will be boosted further.

Chairman of the employers union said a delegation from the union would soon leave for Libya to sign contracts for construction of prefabricated buildings.

Rehabilitation of schools and houses destroyed by the war were also discussed with the Libyan prime minister.
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News Releases

News Releases
Released:  30/10/20142014-10-30
Word count:  99

Libya raises Es Sider crude oil OSP by $1.10/bl in Nov

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Yahoo news
Oct 29 (Reuters) - Libya's National Oil Corp (NOC) has raised its November official selling price (OSP) for the main crude grade Es Sider by $1.10 a barrel, to dated Brent flat, a price list showed on Wednesday.

NOC also sharply raised OSPs for its other major export grades. Es Sharara was set at dated Brent plus 60 cents a barrel for November, up from dated Brent minus 30 cents in October.

The Mellitah OSP was increased to dated Brent plus 30 cents a barrel in November, up from dated Brent minus $1.15 a barrel in October.

(Reporting by Julia Payne, editing by David Evans)  
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News Releases

News Releases
Released:  29/10/20142014-10-29
Word count:  1092

Mellitah Oil &Gas Company (Oil Division),intends to issue the below tender and wish to invite for pre-qualification interested, experienced and reputable Companies specialized in providing similar services stated below to submit all requirements for inclusion in the bidders list to be invited to participate in the following tender:

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NOC

Mellitah Oil &Gas Company (Oil Division),intends to issue the below tender and wish to invite for pre-qualification interested, experienced and reputable Companies specialized in providing similar services stated below to submit all requirements for inclusion in the bidders list to be  invited to participate in the following tender:

Tender No. (760)   

Refurbishment of Benghazi Warehouse

Scope of Work :ٍ

This Scope of Work describes and consists, but is not limited to engineering, procurement, fabrication, transportation & delivery, installation including dismantling of existing defective building components.

  1. Engineering of relevant discipline’s calculations and analysis, preparation of working drawings and comprehensive site survey.
  2. Construction Phase
    1. Replacement of the entire sandwich-type roofing panels, roof gutter and downspout and repair of gable fiberglass panel
    2. Provision of additional office rooms and mezzanine (as light materials storage) inside the building made up of steel and approved wall panels. Repainting of the structural steel components.
    3. Modifications of the building surroundings to comply with safety measure comprising replacement of damaged wall panels, provisions of parking areas and security lighting.

QUALIFICATION REQUIREMENTS

Interested companies for the above tender must satisfy the stipulated requirements and submit the required information below. Failure to submit any of the under listed documents will render automatic disqualification:-

  1. Letter on Company's letterhead Addressedto the “Contract Dept.Manager" stating expression of interest on the respective tender.
  2. Copy of Company Registration in Libya, if already registered, or details (registration) of Branch Office, Representative or Agent in Libya.
  3. Company Profile with full details of similar contracts performed with relevant and verifiable Reference List of Clients where the works had been undertaken Literature/catalogue of the entire range of work /service/equipment and any additional information that will enhance the potential of the applicant /consortium. All completed related work shall be supported with “Acceptance Completion Certificate” duly signed by client/s. On-going related work shall be supported with documents duly signed by the clients to proof of contracts awarded.
  4. Lists of experience shall include ONLY the subject work or related work.
  5. Company owned resources with specifications (i.e. equipment, tools, manpower and others) to include organizational chart
  6. Submission of Financial Status document of the Company turnover for the last 5 years audited by the private firm.
  7. HSE Procedures & Risks Management.
  8. ISO 9001 Certificate.
  9. Foreign Companies shall submitofficial evidence of establishment of a partnership with a local company(Stockholding Company)specializedin providing similar services.This partnership shall be in the form of a new company with a separate legal entity.
  10. Mellitah Oil & Gashas the right to exclude any file does not meet the above stipulated requirements.
  11. Two copies of the Prequalification Documents containing the above stated requirements shall be submitted in sealed envelopes and marked:

Tender No.  (760) –

Refurbishment of Benghazi Warehouse

Addressed to the " Contract Dept. Manager"  to the following address:

Mellitah Oil & Gas Company (Oil Division)

Dahra Kebira Street, P.O. Box 346,

Tripoli-Libya

Or to the following E-mail address:

PRE-Q@Mellitahog.ly

 

 

  1. The prequalification documents shall be submitted not later than 16/11/2014.

 

Important Notes:

1- Companies are required to submit the documents mentioned above.

 Letter on Company's letterhead addressed to the "Contracts Department Manager (Oil Division” expressing interest on the respective tender.

2-The pre‑qualification request is not an invitation to tender. Company is neither committed nor obligated to undertake the work described above or to issue any call for tender or to include any respondent to this invitation or other company on any Bidders List or to award any form of contract.

3-The Invitation to Tender (ITT) and full ITT Package will only be issued to qualified companies that have been pre-qualified.

4- Company will not be responsible for whatsoever costs incurred for preparation and submission presented in response to this notice.

5- Company shall deal only with authorized officers of the bidding companies and not through individuals or agents.

6- Company shall not consider any pre-qualification request all the Conditions been provided as resolution (207)  ,2012 from the economic minister . 

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News Releases

News Releases
Released:  29/10/20142014-10-29
Word count:  713

West Texas Intermediate and Brent crudes advanced for the first time in three days after a report showed that confidence among U.S. consumers rose in October to a seven-year high as gasoline prices dropped.

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Bloomberg
The Conference Board’s index climbed to 94.5 this month, the highest since October 2007, from a September reading of 89 that was stronger than initially estimated, the New York-based private research group said today. WTI prices have slipped 11 percent this month on signs that global oil production is growing faster than demand for fuel.

“The consumer confidence numbers were very encouraging,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. “It’s another sign that the U.S. economy is looking strong. A major reason for the rise in confidence was probably the drop in gasoline prices.”

WTI for December delivery rose 42 cents, or 0.5 percent, to settle at $81.42 a barrel on the New York Mercantile Exchange. Futures touched $79.44 yesterday, the lowest intraday level since June 29, 2012. Prices have declined 17 percent this year.

Futures were little changed after the American Petroleum Institute was said to report U.S. inventories rose 3.2 million barrels last week, according to Bain Energy. Futures rose 0.5 percent to $81.38 a barrel in electronic trading at 4:39 p.m.

Brent for December settlement gained 20 cents to close at $86.03 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at a $4.61 premium to WTI, compared with $4.83 yesterday. Durable Goods

Separate data showed U.S. durable goods orders unexpectedly fell in September and a gauge of home prices showed slower growth. The Fed is on pace to end its monthly bond-buying and leave its key interest rate unchanged near zero, according to Bloomberg surveys of analysts.

A government report tomorrow will probably show that crude supplies rose 3.65 million barrels last week, according to the median of analyst responses in a Bloomberg survey.

“We’re waiting for tomorrow’s storage report,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. “The consensus is for a gain of 3-to-4 million barrels, but we were looking for a 3 million-barrel gain last week and got 7 million. If something similar happens this week, WTI will come under pressure.”

U.S. gasoline inventories probably declined 900,000 barrels in the week ended Oct. 24, based on the median estimate of 11 analysts surveyed by Bloomberg before tomorrow’s report from the Energy Information Administration. Supplies of distillate fuel, a category that includes heating oil and diesel, are projected to have slid 1.4 million. Fuel Prices

November gasoline futures rose 2.59 cents, or 1.2 percent, to settle at $2.1961 a gallon on the Nymex. Ultra low sulfur diesel for November delivery advanced 1.78 cents to close at $2.4931 a gallon.

Regular gasoline at U.S. pumps fell to the lowest level since December 2010. The average retail price dropped 0.3 cent to $3.034 a gallon yesterday, according to Heathrow, Florida-based AAA, the nation’s biggest motoring group.

The API collects information on a voluntary basis from operators of refineries, bulk terminals and pipelines, while the government requires that reports be filed with the EIA, the Energy Department’s statistical arm.

“We’re going sideways,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. “Trades want some new fundamental news before sending prices strongly in any direction. It could be the inventory reports, something about OPEC or economic fresh economic headlines.”

Barclays cut its estimate for the average Brent price in 2015 to $93 a barrel from $96, and for WTI to $85 from $89. ‘Lackluster Demand’

“OPEC supply-side adjustments are expected, but these are unlikely to be sufficient to overcome a lackluster demand picture in the first half of the year,” analysts Miswin Mahesh and Michael Cohen wrote in the report.

The Organization of Petroleum Exporting Countries is unlikely to reduce its production target when it meets in Vienna on Nov. 27, Mohsen Qamsari, a director for international affairs at National Iranian Oil Co., said yesterday according to the Oil Ministry’s news service.

OPEC, which supplies about 40 percent of the world’s crude, is increasing production even as demand growth falters. The group pumped 30.935 million barrels a day in September, the most since August 2013, according to a Bloomberg survey. The gain was led by Libya, where output climbed by 280,000 barrels a day to 780,000, the fifth straight increase.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Stephen Cunningham  
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Oil & Gas News

Oil & Gas News
Released:  28/10/20142014-10-28
Word count:  485

West Texas Intermediate crude fell to the lowest since June 2012 as Goldman Sachs Group Inc. cut its oil price forecasts. Brent slid for a second day.

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Bloomberg
WTI futures fell as much as 1.9 percent in New York. Accelerating output from producers outside North America including Brazil and Azerbaijan will result in an oversupply in 2015, Goldman Sachs said. The Organization of Petroleum Exporting Countries, scheduled to meet in Vienna next month, should let the market balance itself instead of trying to intervene, according to Hasan Qabazard, a former head of the group’s research division.

“The market remains oversupplied as demand continues to look relatively weak, thus the pressure on prices is on the downside,” Jens Naervig Pedersen, a commodities analyst at Danske Bank A/S, said by e-mail from Copenhagen today. “For now, the market awaits a reaction from OPEC.”

West Texas Intermediate for December delivery declined as much as $1.57 to $79.44 a barrel in electronic trading on the New York Mercantile Exchange, the lowest intraday level since June 29, 2012. The contract was at $79.58 at 1:10 p.m. London time. The U.S. benchmark crude’s discount to Brent expanded to $5.22 a barrel.

Brent for December settlement slid as much as $1.50 to $84.63 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was about 33 percent below the 100-day average for the time of day. Prices are down 24 percent this year.

Global Supply

Oil has collapsed into a bear market amid rising global supplies as leading OPEC members resisted calls to cut production. The U.S. is pumping at the fastest pace in almost three decades while Russia’s output has climbed to near a post-Soviet record.

Brent will trade at an average of $85 a barrel in the first quarter, down from a previous projection of $100, Goldman analysts including Jeffrey Currie in New York said in a report. WTI will sell for $75, compared with an earlier estimate of $90, according to the bank.

OPEC, which is responsible for about 40 percent of the world’s supply, will lose its influence as a “first-mover swing producer” as output from U.S. shale reserves fills that role, Goldman said. The U.S. Energy Department has said it’s preparing a report examining how the potential lifting of a ban on domestic crude exports would affect fuel prices. OPEC Output

“We still can’t rule out the possibility that OPEC may cut output” to reassert its market influence, said Hong Sung Ki, a senior analyst at Samsung Futures Inc. in Seoul.

OPEC should reduce its official target for crude output to 29.5 million barrels a day from 30 million currently, Libya’s OPEC governor Samir Kamal said by e-mail today. Iran sees no need for the group to have an emergency session to discuss falling prices before the next scheduled meeting on Nov. 27, Tehran-based Shargh newspaper reported, citing Mansour Moazzami, deputy oil minister for planning.

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

To contact the editors responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net Rachel Graham, James Herron  
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Oil & Gas News

Oil & Gas News
Released:  28/10/20142014-10-28
Word count:  431

Libya has substantially ramped up its oil production in recent months, with output averaging above 900 000 bpd in October, according to the National Oil Corporation (NOC). The increase in production has also supported a strong recovery in oil exports, reaching 18.05 million bbls in September, up from approximately 16 million bbls in August.

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Energy global
Business Monitor International (BMI) reported that according to OPEC data, Libyan crude production averaged 780 000 bpd for September; crude exports stood at 476 700 bpd. Of the 303 300 bpd that was not exported, BMI estimates approximately 115 000 bpd was refined domestically, and most of the remainder put in storage.

Libya has nameplate refining capacity of 378 000 bpd. However, as of end of September the 220 000 bpd Ras Lanuf refinery had yet to restart production. Damage to storage tanks had also brought the 120 000 bpd Zawiya refinery offline for at least 10 days.

Normalisation of operations at Zawiya and Ras Lanuf would absorb the bulk of the 188 300 bpd that was pumped into storage last month. However, with production averaging 120 000 bpd higher in October than September, a significant increase in exports will still be needed to sustain current output. BMI has previously flagged exports as a potential production bottleneck and continues to see this as a reduced threat.

For 2014, BMI forecasts crude exports of 238 000 bpd. This assumes exports averaging approximately 500 000 bpd over the fourth quarter.

Crude discounts spiking demand

Over the coming weeks, BMI expects favourable price differentials to support an increase in demand for Libyan crude. Despite broader weakness in the light sweet market, demand for Mediterranean sweets has proved relatively resilient. Stronger margins have pushed up run rates at European refineries, driving differentials for the major Mediterranean grades to multi month highs.

In contrast, Libya has cut the official selling price (OSP) for the bulk of its Brent linked grades. High premiums were a key factor in deterring buyers in June and July. More competitively priced, BMI now sees room for Libyan cargoes to displace other Mediterranean – alongside some West African – crude in the Atlantic market.

Structural weakness depressing prices

While favourable differentials will offer temporary relief for Libyan exports, the outlook for light sweet crudes remains bearish. Rising production globally and stagnant demand growth has led to increasingly oversaturated markets.

However, in the competition, Libya holds some advantages. Libyan crude favoured by refiners for its high middle distillate yield. Freight distances to the major demand centres are also lower than most of its competitors. And buyer sentiment is improving. Should pricing remain supportive, BMI sees room for a wider return of Libyan crude to market, adding further downward pressure on Brent.

The risks to the BMI short term outlook on Libya lie heavily to the downside. The weak and deteriorating political and security environment is inconsistent with 900 000 bpd production and the probability of further supply disruptions is substantial. BMI holds to a forecast of high but volatile output over the coming quarters.

Adapted from a report by Emma McAleavey.
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News Releases

News Releases

Brega Petroleum Marketing Co: Announcement for Pre-Qualification for Provision of Supply and installation of the thermal insulation of tank no. 501 B project at Ras Elmungar terminal.

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Brega Petroleum Marketing Co.
Brega Petroleum Marketing Co. intends to tendering Supply and installation of the thermal insulation of tank no. 501 B project at Ras Elmungar terminal , according to scope of work and requirements which are summarized in the following essential items:
- Collection and transfer of aluminum sheets and hand over to the company s waste site.
- Collecting mineral wool, put mineral wool in nylon bags and seal it and disposed of according to environmental procedures.
- Removal and dismantling of all roof mineral wool and aluminium sheets.

So companies possessing relevant experience, and has technical and financial capabilities are invited to express their interest in participation to execute this project, to submit their files for Pre-Qualification according to the following terms and conditions:

1. Fill out the PQQ available via http://www.brega.ly/ tender.zip and return via email highertenders@brega.ly also hard copy of PQQ Document to be enclosed with the company’s file.
2. A cover letter expressing of interest to participate in pre-qualification for the project, addressed to High Tender Committee.
3. Provide organisation's articles of incorporation and its chart - official evidence attesting registration at the commerce registration office – valid business license – valid tax clearance certificate.Foreigncompani esshould submit registration documents from Libyan official state bodies.
4. Provide the financial status for the last) 3(years (2011 –2012 – 2013) authenticated by legal auditor.
5. Provide details of your experience of similar scope of work.
6. Provide list of technical crew and company’s equipment.
7. Full address of company headquarter and its branches, telephone, fax numbers, email & website address.
• Important Notes:
- Only officially assigned representative will be dealt with.

- The invitation to tender and handing over specification and general terms & conditions documents only to companies that found qualified by pre-qualification evaluation final result.

- Documents shall be submitted to the Secretary of the High Tenders Committee in a sealed envelope addressed to Brega Petroleum Marketing Co. High Tenders Committee office, located at Tripoli International Airport Road, Brega’s Finance department building, Tripoli, near Tripoli Oil Terminal .

- The closing date for submission of documents is on Monday 10/11/2014.
- Any file is not included the required documents will be rejected.

For any quarries please contact High Tenders Committee:
Tel. 021 362 0110 fax :021 361 9870 Email: highertenders@brega.ly
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News Releases

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Zliten allows companies and Libyan banks to establish residential communities.

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Libyan investment
Zliten Municipal Council granted permission for companies and Libyan banks licensed in the field of real estate investment to establish communities outside investment schemes approved by the Municipality of Zliten.

The Municipal Council Resolution No. (31) for 2014 determines a number of regulations, controls and standards stipulated by legislation governing the urban planning that must be considered in the preparation of charts.  
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News Releases

News Releases
Released:  27/10/20142014-10-27
Word count:  243

Austrian oil and gas group OMV said on October 20 its quarterly production was boosted by the resumption of operations in war-torn Libya.

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New Europe
“Production levels in the third quarter of 2014 increased by 5% versus the second quarter as production in Libya partially resumed,” the company said in its report for the second quarter. OMV said much of its Libyan assets were shut in by violence and the security situation there remained difficult.

Progress in Libya and also Norway offset lower volumes in Austria and Romania.

OMV said production was 311,000 barrels of oil equivalent per day, up from 297,000 in the second quarter and 275,000 a year earlier. Its refining margin jumped to $4.90 per barrel from $1.92 in the second quarter.

OMV said in its trading statement that completion of a modernisation programme at a refinery in Romania adds approximately $5 barrels of oil equivalent to the standard profitability of the Petrobrazi refinery. “This is equivalent to an overall increase of the OMV indicator refining margin across all the refining assets of the group of approximately $1 barrels of oil equivalent,” it said.

Oil output in Libya, which accounted for 10% of OMV’s total production before the 2011 uprising which toppled Muammar Gadaffi, has been hit by disruptions since mid-March due to unrest and protests at oilfields and ports.

OMV still has production disruptions in Libya and output in Yemen is also suffering from attacks on pipelines, it said two weeks ago.

In its latest monthly market report, the Organization of Petroleum Exporting Countries (OPEC) said production from member state Libya in September was around 800,000 barrels per day, about two-thirds its normal production levels.  
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Oil & Gas News

Oil & Gas News
Released:  24/10/20142014-10-24
Word count:  430

NEW YORK, Oct 23 (Reuters) - Brent crude oil jumped nearly 3 percent on Thursday, its most in over four months, after an industry source said Saudi Arabia cut output in September following the summer's tumble in prices.

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Reuters
Strong euro zone economic data, better-than-expected Chinese manufacturing numbers and a rally in Wall Street stocks also boosted oil prices, traders said.

Brent's front-month contract for December delivery settled up $2.12, or 2.5 percent, at $86.83 barrel. It was the largest percentage gain in a day for Brent since June 12, and came after a session peak of $87.19.

U.S. crude's front-month finished up $1.57, or 2 percent, at $81.86, after an intraday high at $82.37. That was the biggest percentage rise since Sept. 16.

Both Brent and U.S. crude have lost at least a fifth of their value from June highs due to fears of oversupply.

Some analysts remained skeptical of Thursday's price recovery, saying any rebound between now and next month's meeting of the Organization of Petroleum Exporting Countries (OPEC) was likely to be short-lived.

"I'm not impressed," said Walter Zimmerman, chief technical analyst at United-ICAP in Jersey City, New Jersey. "Considering how far Brent has fallen, from more than $115 to around $82, the nature of this rebound is more of a dead-cat bounce than a dramatic illustration that we have hit some kind of meaningful bottom."

The 12-member OPEC meets on Nov. 27 to consider adjusting its output target of 30 million barrels per day for the first half of 2015 and so far only a minority of members have called for an output cut. Prices rallied on Thursday after an industry source said the amount of crude supplied by Saudi Arabia to domestic and export markets last month fell to 9.36 million barrels from around 9.69 million barrels in August.

"A story like that would certainly move the market no matter who said it, because the Saudis themselves told OPEC they had raised production," said James L. Williams, energy economist at WTRG Economics in London, Arkansas.

Saudi Arabia, the world's largest oil producer, told OPEC's September world oil supply report that it pumped 9.7 million barrels per day (bpd), up from around 9.6 million bpd in August. Barrels not supplied to the markets are put into storage.

"The question in every trader's mind is what is OPEC going to do at its November meeting, and all that uncertainty has made the market go yoyo the past few days," Williams said.

Saudi Arabia has previously sent signals it is comfortable with markedly lower oil prices and willing to maintain high supply levels to compete for market share.

Crude inventories in the United States, the No. 1 oil importer, meanwhile, surged by 7.1 million barrels last week to 377.68 million barrels, more than double what analysts had forecast.

(Additional reporting by Sam Wilkin in London and Jane Xie in Singapore; Editing by Christopher Johnson and Chizu Nomiyama)  
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News Releases

News Releases
Released:  24/10/20142014-10-24
Word count:  318

(Reuters) - Turkey's special envoy to Libya said on Wednesday that Turkish Airlines would resume flights to the eastern Libyan city of Misrata next week, the first foreign carrier to fly to the country since fighting there worsened in July.

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Reuters
Three years after the overthrow of Muammar Gaddafi, Libya is in chaos, with Islamists and other armed groups feuding for territory and power and the government unable to impose control.

Turkey's national carrier (THY), which is majority owned by the state, will initially operate a daily flight to Misrata, 200km to the east of Tripoli from Istanbul, starting on October 27, the envoy Emrullah Isler said.

The airline is also considering the security and logistical possibilities for routes to the eastern cities Tobruk and Bayda, Isler said on his return from Libya on Tuesday night.

Turkey is one of Libya's biggest business partners and has maintained strong diplomatic ties with successive governments since Gaddafi's fall.

Tripoli's main airport, which was badly damaged as fighters battled for its control, is not operational. More than 20 civilian aircraft were damaged or destroyed at the airport. Libyan airlines use a military base to fly to Tripoli.

The capital was seized in August by an armed group from Misrata, forcing the government to flee to Bayda and the elected parliament to move to Tobruk near the Egyptian border.

Tripoli's new rulers proclaimed their own government and formed a parliament, neither of which have been internationally recognised.

However, on his trip to Libya Isler met with the Tripoli-based, self-declared prime minister, Omar al-Hasi, the first publicly known diplomatic meeting with a foreign representative.

Last month, the United Nations started dialogue in an effort to find a solution to the oil-rich desert nation's mounting political woes.

Isler said Turkey was prepared to play a role.

"We as Turkey are ready to contribute to the dialogue process. For the dialogue to proceed healthily clashes must stop," he said.

Western powers and Libya's neighbors worry the country is drifting toward becoming a failed state, and that unrest could spark a full-blown civil war.

(Reporting by Tulay Karadeniz; Writing by Ece Toksabay; Editing by Jonny Hogg and Raissa Kasolowsky)  
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News Releases

News Releases
Released:  23/10/20142014-10-23
Word count:  544

West Texas Intermediate crude fell to the lowest in more than two years after an Energy Information Administration report showed U.S. inventories increased more than forecast last week.

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Bloomberg
Stockpiles climbed 7.11 million barrels in the week ended Oct. 17, the EIA said in a weekly report. Analysts surveyed by Bloomberg had expected a gain of 3 million. Refiners operated at the lowest level since March, reducing gasoline inventories. “It’s definitely a surprise and a bearish report,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “The further decline in the utilization rate obviously causes crude oil inventory to back up.”

WTI for December delivery slid $1.97, or 2.4 percent, to $80.52 a barrel on the New York Mercantile Exchange, the lowest settlement for front-month futures since June 28, 2012. The volume of all futures traded was about 9.6 percent above the 100-day average for the time of day.

Brent for December settlement fell $1.51, or 1.8 percent, to $84.71 a barrel on the London-based ICE Futures Europe exchange. Volume was 4.8 percent below the 100-day average. The European benchmark crude was at a premium of $4.19 to WTI on ICE, compared with $3.73 yesterday.

Crude inventories increased to 377.7 million barrels last week, the highest since July, according to the EIA. Supply has grown about 21 million barrels in the past three weeks. Stockpiles at Cushing, Oklahoma, the delivery point for WTI futures, rose to 20.6 million.

Operating Rate

“It’s a very bearish report,” said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania.

Inventories along the Gulf Coast, known as PADD 3, increased 5.38 million barrels to 195.7 million. The refinery operating rate decreased to 86.7 percent, the lowest since March 21. U.S. refiners schedule maintenance for September and October as they transition to winter from summer fuels.

“Having the utilization rate at 86.7 percent is usually indicative of us being at the peak of turnaround season right now,” said Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC. “The severity of crude builds will eventually start to slacken.”

Gasoline stockpiles fell by 1.3 million barrels to 204.4 million, the EIA said. Analysts expected a drop of 1.45 million. Distillate stockpiles rose 1.05 million barrels to 125.7 million.

Product Supply

“Lower refinery runs, due to refinery maintenance, contributed not only to lower crude demand but also lower refined product supply,” Harry Tchilinguirian, BNP Paribas SA’s London-based head of commodity markets strategy, said in an e-mail. Gasoline futures dropped 2.6 percent to $2.1556 a gallon on the Nymex.

Both WTI and Brent have plunged more than 20 percent from their June highs, meeting the common definition of a bear market. Investors are buying into funds that track oil prices at the fastest rate in two years, betting that crude will rebound from a bear market. The four biggest oil exchange-traded products listed in the U.S. received a combined $334 million this month through Oct. 20, the most since October 2012, according to data compiled by Bloomberg.

The Organization of Petroleum Exporting Countries needs to reduce crude output by at least 500,000 barrels a day, Samir Kamal, Libya’s OPEC governor, said by e-mail today. It’s the first time since the market collapse that an OPEC member has suggested how much production should be cut.

Kamal said his comments reflected personal views, not the official Libyan position.

To contact the reporter on this story: Moming Zhou in New York at mzhou29@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Stephen Cunningham, Charlotte Porter  
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Oil & Gas News

Oil & Gas News
Released:  23/10/20142014-10-23
Word count:  332

(Reuters) - OPEC should cut its oil output by at least 500,000 barrels per day (bpd), a Libyan oil official said, to tackle oversupply and support prices that have slid to a four-year low.

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Reuters
The 12-member Organization of the Petroleum Exporting Countries meets on Nov. 27 to consider adjusting its output target of 30 million barrels per day for the first half of 2015 and so far only a minority of members have called for an output cut.

"I would like OPEC to cut production of at least half a million (bpd) as all studies indicate the need for that even before the fall in prices," Samir Kamal, Libya's OPEC governor and head of planning at the Libyan oil ministry, told Reuters. "The oversupply is about a million."

Kamal said he was not speaking on behalf of the Libyan government. Libya is struggling with two competing governments, each with its oil minister. Neither minister has commented on the OPEC meeting.

OPEC's meeting is looking like one of its most important in years. Oil slid to below $83 barrel last week from $115 in June on abundant supply and concern of weakening demand, below the budgetary pain thresholds of many OPEC countries.

The Libyan official said that his country deserved to be an exception to any OPEC cut since it is working to sustain a recovery in production that has been hit by months of fighting and protests. "You are aware of the situation of the country being out of the market for almost a year, facing budget deficits, so we should not be expected to cut our production which we are struggling to bring to the level of 1 million," he said.

He said that in previous meetings, OPEC minsters have shown sympathy with Libya's troubles and "expressed that (they) will make room for Libyan production."

With more than a month to go before OPEC meets, there is litte outward sign of momentum building around the idea of cutting output for the first time since the 2008 financial crisis.

Top OPEC producer Saudi Arabia has been quietly telling market participants it is comfortable with lower prices, Reuters reported earlier this month. Kuwait has said an OPEC cut is unlikely.

(Editing by William Hardy)
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Oil & Gas News

Oil & Gas News
Released:  22/10/20142014-10-22
Word count:  342

West Texas Intermediate crude oil will find support around $75 a barrel should it break through $80 on a sustained basis, according to Auerbach Grayson & Co.

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Bloomberg
“We’re still keeping an eye on $80,” Richard Ross, global technical strategist at the New York-based brokerage firm, said yesterday. Below that level is a lot of support in the $75-to-$76 area, he said.

Prices have tumbled more 20 percent from their June peak, meeting a common definition of a bear market, as Iraqi output continued to flow despite conflict in the north of the country and production increased in Libya and the U.S. At the same time, forecasts for global oil demand growth have been reduced by the International Energy Agency.

Crude oil for November delivery fell 4 cents to $82.71 a barrel yesterday on the New York Mercantile Exchange. Futures rose 22 cents to $82.93 at 8:26 a.m. Last week, it touched $79.78, the lowest intraday price since June 29, 2012.

Members of the Organization of Petroleum Exporting Countries boosted crude output by 1.4 percent to 30.935 million barrels a day in September, the most since August 2013, according to a Bloomberg survey. The gain was led by Libya, where output climbed by 280,000 barrels a day to 780,000, the fifth straight increase.

OPEC Prices

OPEC’s biggest producers have responded to the drop in futures by cutting their official selling prices, sparking speculation they will compete for market share rather than trim output. Saudi Arabia, Iraq, Iran and Kuwait have deepened the discount for their barrels sold to Asia. The 12-member group meets to discuss production and prices in Vienna on Nov. 27. U.S. crude output rose 0.9 percent to 8.95 million barrels a day in the week ended Oct. 10, the most since June 1985, according to Energy Information Administration data. The combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies from shale formations in the central regions of the nation.

Ross identified $76.28 a barrel as a key retracement level of the drop from the record high of $147.27 on July 11, 2008, to the low of $32.40 touched Dec. 19 of that year.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Stephen Cunningham
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Oil & Gas News

Oil & Gas News
Released:  21/10/20142014-10-21
Word count:  575

The oil futures complex settled lower Monday as a rebound in Libyan production and concerns over the global economy added to the perception of an already oversupplied market.

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Platts
Front-month NYMEX crude closed 4 cents lower at $82.71/b, while ICE December Brent ended 76 cents lower at $85.40/b.

In refined products, NYMEX November ULSD settled down 1.2 cents at $2.4856/gal. NYMEX November RBOB closed 3.25 lower at $2.2002/gal.

Crude futures managed to avoid falling to multi-year lows seen last week, but were still unable to close in positive territory. "Oil prices had a hard time maintaining any kind of rally," Phil Flynn, analyst at Price Futures Group, said.

A downturn in the US equity markets, combined with news out of Iran that the government is not calling for an emergency OPEC meeting, helped push oil prices lower, he said.

Another issue emerging Monday was the US Department of Energy's upcoming review on the Strategic Petroleum Reserve, Flynn said.

One conclusion reached could be the following: "Why have an SPR when we have North Dakota?" he said.

An agency letter released publicly Monday said the DOE will be looking at a range of issues related to the SPR, including its size, in light of changes in the US and world oil markets (See story, 1818 GMT).

The SPR currently holds 691 million barrels of crude in underground salt caverns in Louisiana and Texas and is authorized to hold up to 1 billion barrels.

Rising US crude production has been a major driver behind the slide in oil prices since the summer.

Another factor has been Libya, which has seen a recovery in production and exports, despite political turmoil and fighting.

Libyan output hit 925,000 b/d at the end of September before falling due to disruption by striking workers at eastern oil fields.

On Monday, Libyan crude production reached 890,000 b/d, up from 765,000 b/d earlier this month (See story, 1353 GMT).

Also in the Middle East, fresh data showed Saudi Arabia's exports fell to their lowest monthly volume since March 2011 (See story, 1210 GMT).

Saudi Arabia exported 6.683 million b/d in August, a 326,000 b/d drop from July, according to data from the Riyadh-based Joint Oil Data Initiative.

Weaker exports would seem to represent a counterpoint to the prevailing narrative that the world's largest oil exporter is more interested in cutting prices than output.

Though, one factor behind the lower exports was domestic demand. The amount of crude processed by Saudi refineries hit a record-high 2.167 million b/d in August as new refineries in Jubail and Yanbu have come online or ramped up.

"Looked at it from another perspective, the drop in prices over the past four months is simply the market's way of requesting a production cut," Citi Futures analyst Tim Evans said in a client note.

How much further oil prices will slide has become the focal point ahead of OPEC's next conference scheduled for November 27.

Analyst Philip Verleger said prices will continue falling until enough non-Middle Eastern production shuts in or until other producers understand that Middle Eastern countries will not accept a reduction in market share.

"The down trend is not over. It has just started," he said in a client note Monday.

This cycle is underway after Middle Eastern producers Kuwait, Iraq, Iran, the United Arab Emirates and Saudi Arabia slashed their discounts to oil benchmarks in every major market to ensure refiners will operate profitably, he said.

With an incentive to operate full-tilt, more products will enter the market, pulling product prices lower which will then drag down crude prices as well, Verleger said.

--Geoffrey Craig, geoffrey.craig@platts.com --Edited by Katharine Fraser, katharine.fraser@platts.com  
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News Releases

News Releases
Released:  21/10/20142014-10-21
Word count:  228

VIENNA (Reuters) - Austrian oil and gas group OMV raised production by 5 percent in the third quarter from the second as progress in Libya and Norway offset lower volumes in Austria and Romania.

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Reuters
OMV said on Monday production was 311,000 barrels of oil equivalent per day (boe/d), up from 297,000 in the second quarter and 275,000 a year earlier.

Its refining margin jumped to $4.90 per barrel from $1.92 in the second quarter.

OMV said in its trading statement that completion of a modernisation programme at a refinery in Romania "adds approximately $5/bbl to the standard profitability of the Petrobrazi refinery".

"This is equivalent to an overall increase of the OMV indicator refining margin across all the refining assets of the group of approximately $1/bbl," it said.

Improved middle distillate spreads also helped the margin.

Oil output in Libya, which accounted for 10 percent of OMV's total production before the 2011 uprising which toppled Muammar Gadaffi, has been hit by disruptions since mid-March due to unrest and protests at oilfields and ports.

OMV still has production disruptions in Libya and output in Yemen is also suffering from attacks on pipelines, it said last week.

The company announced last week that Chief Executive Gerhard Roiss would leave at the end of June, nearly two years ahead of schedule, as part of a shake-up that will involve its gas business being merged into a downstream division.

OMV said it would have net charges of around 20 million euros in the third quarter. It expected its tax rate to rise to between 35 and 40 percent, driven mostly by increased liftings in Libya.  
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News Releases

News Releases Oil & Gas News
Released:  20/10/20142014-10-20
Word count:  260

Crude-oil futures were in positive territory in Asian trade Monday after being decimated last week, but traders and investors remain unsure of whether prices can hold.

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Market watch
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX4, +0.02% traded at $83.18 a barrel, up $0.43 in the Globex electronic session. December Brent crude LCOZ4, -0.39% on London’s ICE Futures exchange rose $0.08 to $86.24 a barrel.

The U.S. oil benchmark lost 3.58% last week and has been down for three consecutive weeks, while Brent crude in London has fallen for four weeks in a row and lost 4.88% last week. “Buyers will step in only when they think prices have hit bottom. They don’t want to catch a knife when it is falling,” a Singapore-based oil trader said.

Saudi Arabia and Kuwait have halted production at a jointly run oil field, which was producing around 300,000 barrels of oil a day, due to environmental concerns, people familiar with the matter said Sunday.

Oil markets are looking for any indication from the Organization of the Petroleum Exporting Countries for cuts in oil supply levels. Also, on tap this week is economic growth and industrial production data from China on Tuesday, which will affect market sentiment.

Money managers such as hedge funds cut bullish bets on Nymex crude in the week ended Oct. 14, Commodity Futures Trading Commission data showed. “Overall holdings across the U.S. petroleum markets declined to the lowest level since September 2010,” analyst Tim Evans at Citi Futures said.

Nymex reformulated gasoline blendstock for November NGX14, -2.20% --the benchmark gasoline contract--rose 50 points to $2.2377 a gallon, while November diesel traded at $2.4977, 1 point higher.

ICE gasoil for November changed hands at $740.75 a metric ton, up $5.75 from Friday’s settlement.  
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Oil & Gas News

Oil & Gas News
Released:  20/10/20142014-10-20
Word count:  501

LONDON, Oct 17 (Reuters) - OPEC should cut its oil output to support prices, a Libyan oil official said, as oil prices that have slid to a four-year low this week add to a squeeze on producers' budgets.

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Reuters
So far, Libya is among a minority in the Organization of the Petroleum Exporting Countries, and the only one of the four African OPEC members, to call for an OPEC cut, adding to signs that such a move is unlikely.

"OPEC is facing a challenge to remove the surplus from the market so the price will return to normal levels," Samir Kamal, Libya's OPEC governor and head of planning at the Libyan oil ministry, told Reuters.

He said Libya should be an exception because its recent production losses have squeezed its budget and he expected no impact on Libya's production from any OPEC decision. "The OPEC members know the security situation in Libya," he said.

Libya is struggling with two governments and two parliaments since an armed group from the western city of Misrata seized Tripoli, setting up its own cabinet and assembly while forcing the internationally recognized government to move to the east.

OPEC meets on Nov. 27 to set policy for the first half of 2015 and despite a slide in prices to below $83 barrel this week from $115 in June, many members including powerful Gulf producers are opposed to cutting output.

Top OPEC producer Saudi Arabia has been quietly telling market participants it is comfortable with lower prices in a move that may be aimed at retaining market share and slowing the expansion of rival producers. Kuwait said on Sunday OPEC was unlikely to cut production. NIGERIA AND ANGOLA QUIET

Of the other three African members, Algeria's oil minister has said he is not concerned by lower prices. Nigeria and Angola have not officially stated their view.

An OPEC delegate from a West African OPEC member said his country was keeping a close eye on prices but was not convinced of the need for supply cutbacks.

"I am not sure it would do any good," the delegate said, declining to be identified. "We are watching to see how the market will behave."

Angola and Nigeria are both seeing their oil output fall due to field declines. When OPEC last cut production, in 2008, they implemented little of their share, analysts said at the time.

Some analysts, including Sam Ciszuk of the Swedish energy agency, have not ruled out the prospect that OPEC could still agree to cut its output when it meets, saying that the Saudi strategy could be aimed at enouraging others to participate.

"It is likely that Saudi might take their production close to where it was when the last ceiling was proclaimed and then start to demand of others to do a bit of a cut," Ciszuk said, referring to OPEC's output target of 30 million barrels per day.

Others say OPEC would be better advised to accept lower prices.

"They should respond in a perfectly normal, competitive manner and do what is necessary to protect and even increase their market share," said David Hufton of oil brokers PVM. "OPEC's day as a cartel with pricing power are over."

(Additional reporting by Feras Bosalum in Benghazi; Editing by William Hardy)  
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News Releases

News Releases
Released:  20/10/20142014-10-20
Word count:  321

MEP Alfred Sant says that SMEs in Malta that have long-standing business relations with Libya face the threat of closure as a result of the ongoing Libyan crisis.

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Malta today
European Parliament member Alfred Sant said that more state-aid should be provided to small and medium enterprises (SMEs) to war-torn areas such as Libya and Ukraine.

“Trade and investment is being disrupted by acts of war and civil strife in territories close to the EU such as Libya and Ukraine,” Sant told the European Commission. “SMEs in a number of member states that have developed long-standing commercial relations with these territories, such as between Malta and Libya, are being so badly hit that they face the threat of closure under the current economic conditions.”

Sant asked whether the European Commission could consider waiving or amending state aid rules when the governments of such European member states seek to apply national support measures to protect these SMEs and their ‘traditional’ commerical relations with the war-torn areas.

Outgoing European Commissioner for Competition Joaquin Almunia told Sant that risk finance guidelines have been amended to encourage more investors to finance SMEs. He also said that since July 2014 the state aid framework has become more “flexible” and “generous” to provide support to SMEs in zones of war or civil strife. The most flexible schemes allow European member states to grant up to €200,000 for a rolling period of three years. More targetted schemes offer a wide range of block-exempted measures for SMEs to receive support without prior notification to the Commission.

“We do not have specific rules dealing with loss of commerical possibilities due to war or civil unrest,” Almunia said. “However, we believe that, if exploited to the maximum, this new framework should provide support to SMEs in such situations.”

Sant responded that there is a need for a more flexible framework that will allow SMEs to be given state aid.

“It seems that the European Commission is not understanding this fact thoroughly,” Sant said. “More efforts are needed to convince them.”

Sant is a member of the European committee on economic and monetary affairs.
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