Libya Projects Oil Exports Rise by End 2016

Libya Projects Oil Exports Rise by End 2016

The Chairman of the Libyan National Oil Corporation (NOC), Mustafa Sanalla, is optimistic that the country’s exports could reach 900,000 b/d by the end of 2016 if all oil terminals were opened and the blockade militias honor the agreement to resume operations, the Tripoli Post reported.

The majority of the initial increase in production will likely come from NOC’s largest subsidiary, Arabian Gulf Oil Company (Agoco). In July, Agoco declared that the eastern Sarir oilfield, which normally produces about 100,000 b/d, remained closed as the company waited for funds to fix equipment and pay off debts.

In a meeting with municipal officials from central Libyan regions including those of Jikharra, Sanalla reiterated that “oil terminals must be reopened without any pay off and only through official channels.” In a statement on the NOC’s website, Sanalla said that the corporation is working with the Unity government to restart exports from the ports that were closed and from the fields that supply them. “We need to be clear there are still big military, political, and legal obstacles that must be resolved. NOC will immediately start technical works, and we will mobilize workers as quickly as possible,” he added.

Currently, Libya is producing about 300,000 b/d of oil, down from 1.6mb/d in 2011 when the country was in a stable condition. According to analysts cited by Gulf News, Libya’s output is unlikely to go up significantly despite NOC’s assurances, as the oil infrastructure in the country is in a bad shape due to damage done by terrorist groups and needs repairs.


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