OPEC crude output is at the right level, says UAE

Reuters

* $100 a barrel is sustainable - minister

* Sees no sign of OPEC changing quota in December

* UAE Sept output at 2.7 to 2.8 mln bpd

* Angola official content with oil prices

By Meeyoung Cho

DAEGU, South Korea, Oct 13 (Reuters) - OPEC's crude oilproduction is at a suitable level for the market and there is notalk of the cartel changing output when it meets in December,UAE energy minister Suhail bin Mohammed al-Mazroui said onSunday.

A senior official from Angola, a fellow member of theOrganization of the Petroleum Exporting Countries (OPEC), latersaid he shared the minister's view on OPEC's output target of 30million barrels per day (bpd).

OPEC, which pumps more than a third of the world's oil,meets on Dec. 4 in Vienna to decide whether to adjust the outputtarget.

"There is no sign or something that we can tell you today tosay we are increasing or decreasing the quota," Mazroui toldReuters in an interview in the city of Daegu, about 300kmsoutheast of South Korea's capital and the venue of this week'sWorld Energy Congress.

"But what is certain is we will ensure the market iswell-supplied."

The United Arab Emirates, which will bid to host thecongress in 2019, produced 2.7 million to 2.8 million bpd ofcrude last month, Mazroui said, but he declined to reveal thismonth's production.

OPEC's September output was the lowest since October 2011,when the group pumped 29.81 million bpd, according to Reuterssurveys, and leaves supply a mere 70,000 bpd above its outputtarget of 30 million bpd.

The cartel again lowered the forecast demand for its crudein the fourth quarter and 2014 in a monthly report on Thursday,saying that production remains higher than next year's expecteddemand despite a plunge in Iraqi and Libyan output.

SUSTAINABLE PRICES

Asked about current oil prices, Mazroui said that about $100a barrel is "fair and sustainable" for producers and does notharm the market.

Brent crude rose above $117 in August on thedisruption of Libyan supply and the prospect of U.S. militaryaction against Syria. In the past four weeks it has rangedbetween $107 and $112 a barrel.

On the sidelines of the World Energy Congress, Angola's viceminister for petroleum, Anibal Silva, described current pricesas "good".

Asked about the possibility of OPEC changing the outputtarget at its December meeting, Silva said he didn't think so,noting the market equilibrium at present.

The UAE oil minister, meanwhile, said that his country'sproduction capacity will increase to 3.5 million bpd by 2017,regardless of any delay in its oil concession process. Itscurrent licences expire at the start of next year.

Abu Dhabi National Oil Company (ADNOC) expects to receivebids this month from companies hoping to run the ADCO concessionfor decades to come. ADNOC sources have said that it will takethree or four months to study the offers and submitrecommendations to the Supreme Petroleum Council.

ADNOC holds a 60 percent controlling stake in ADCO, whileoil giants ExxonMobil, Royal Dutch Shell, Total and BP, each hold 9.5 percent stakes.

Mazroui separately said that construction of four nuclearreactors in the UAE is running to schedule. The plants are dueto be operational in 2020 and the UAE expects them to reduce itsclimate-warming carbon emissions by 12 million tonnes a year.

The minister also insisted that there are no safety concernsover the project, which was awarded to a South Korean consortiumled by Korea Electric Power Corp.

South Korea has been embroiled in a scandal over fake safetycertificates for parts in its nuclear reactors.

"We are confident that our partners will deliver the projectsafe," Mazroui said.

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