Libya aims to boost oil production to 1.2 million barrels per day (bpd) by August year as infrastructure is rehabilitated and agreements are made with factions to lessen the impact of political turmoil, an official from the Libyan state oil firm said.
“The big IOCs (international oil companies) are still operating, the security situation has improved that’ s how the country was able to produce thousands of barrels,” Jadalla Alaokali, a member of the board of directors at National Oil Corporation (NOC) Libya said on Wednesday at the Egypt Petroleum Show in Cairo. “We’re helping IOCs to rehabilitate their facilities.”
Libya pumped 675,000 bpd during January according to OPEC’s monthly report and was exempted from the production cut deal made by OPEC members due to the ongoing conflict in the country that hammered its oil production.
“Our plan is to achieve 1.2 million bpd by August this year,” Alaokali told reporters.
Libya produced 1.6 million bpd 1.6 million bpd before its 2011 uprising.
“Now we are taking to the tribes who are closing the fields at El Feel,” he said, adding that the major oilfield is pumping 75,000 bpd.
NOC is working with its partners also at the major Sharara field, who are starting to send manpower for the necessary maintenance. Sharara is currently producing approximately 100,000 bpd, he said. Sharara and El Feel together can produce more than 400,000 barrels per day.
Alaokali said NOC has budget approvals for capital spending on maintenance of the facilities. “We hope by the end of March we will have enough from the first quarter budget so the operators can start the needed maintenance to start increasing the production and reach 1.2 million bpd.
NOC through engineering firm is assessing the damage on facilities and will have an estimate on cost soon.
Alaokali said the country is also reviewing the current petroleum law to make investments from new comers more attractive and easier for the existing IOCs.
“We started work on the making changes to the law and had workshops with IOCs about views on the existing law,” he said.