LIBYAPROSPECT – Tripoli
The comeback of Libya’s oil production continues with the resurgence of the Libyan oil sector beginning again after the Libyan National Oil Corporation (NOC) opened Libya’s largest oil field, Al-Sedra, in the past few weeks.
The threat the commander of the army of the House of Representatives (HoR), General Khalifa Haftar, posed with his pursuit of power paved the way for the stagnation of oil production in Libya. The latest forecasts place Libya’s national production at approximately 900,000 barrels per day during the next few months. That is a 30% increase in Libya’s current oil production.
Also, with the new government in power, the Petroleum Facilities Guard (PFG) led by Ibrahim Jadhran, an ex-ally of Haftar, has agreed to oversee major pipelines fed by Al-Feel field, and have lifted a two-year blockade on the transmission of oil on the 14th of December.
On Monday, Libya’s oil production stood firmly at 622,000 barrels per day, which was a slight increase in production since it reopened on the 14th of December.
The NOC stated that it could add a further 175,000 barrels per day within the next month, and approximately 270,000 barrels per day within the next three months if pipelines from Al-Sharara and Al-Feel oil fields were reopened, and a ‘business as usual’ approach was taken immediately.
Libya is a member of the Organisation of the Petroleum Exporting Countries (OPEC) but is exempt from their agreed pledge to cut oil production levels.
According to the head of Libyan Oil Audit Bureau, Khalid Shakshak, the two-year lift on the blockade could add to more than 400,000 barrels per day to Libya’s current oil production.
Shakshak also said that the revival of Libya’s oil sector would resolve approximately 70% of Libya’s economic problems.
Libya’s oil output remains much lower than the 1.6 million barrels per day rate before the 2011 revolution, but this remains a silver lining to all the troubles Libya has faced in the last five years.