Libya needs stability, budget to sustain recent oil output rebound, says NOC chief

Published: Updated:
Read Mode
100% Font Size
3 min read

Maintaining the recent big recovery in oil output that Libya has seen in the last few months is conditional on stability and budget, the head of the state-owned National Oil Corporation told an industry event.

For all the latest headlines follow our Google News channel online or via the app

“I hope we can sustain but this conditional on stability of production, there is no more blockade, and the budget,” Mustafa Sanalla told the Atlantic Council Global Energy forum.

Read more: Libyan oil production tops 1.2 million bpd, as sector makes fast recovery

Sanalla said that even as Libyan output recovered to 1.3 million barrels per day (bpd) prices were “still good and improving”, adding that production cuts from OPEC+ were helping to stabilize the market situation.

Libya’s oil output has risen sharply since the gradual lifting of an eight-month blockade by eastern forces in September, having plummeted to 100,000 bpd.

On January 16, NOC said production fell by 200,000 bpd as it shut down a main pipeline for maintenance work.

“This can give you an indication that the infrastructure in Libya is in bad shape, this pipeline is more than 60 years old,” Sanalla said.

He added that NOC was in discussion with its partners on how they can help the corporation with funding projects, if the Libyan government cannot provide the right budget.

“Our partners are keen to help in this regard,” Sanalla said.

Sanalla said the NOC has ambitions to raise production to 2.1 million bpd within three years and that it was discussing with its foreign partners how to get there.

Top Content Trending