June 26 (Bloomberg) -- Libya may cut oil production because the market is oversupplied, the nation's top oil official said.

``We are also weighing such a move because of the threats and intimidation against OPEC,'' National Oil Corp. Chairman Shokri Ghanem said in a telephone interview today from Tripoli. ``We have to protect our interests.''

He declined to say when a decision would be made on whether to lower production, or give any indication of the size of the cut under consideration.

Ghanem cited threats of sanctions against Iran and U.S. legislation allowing lawsuits against the Organization of Petroleum Exporting Countries.

Libya is Africa's third-largest producer behind Angola and Nigeria. It produced 1.7 million barrels a day in May, according to Bloomberg estimates.

To contact the reporter on this story: Maher Chmaytelli in Nicosia at o mchmaytelli@bloomberg.net

Last Updated: June 26, 2008 05:44 EDT