Libyan oil output could reach 1.4 million b/d.

Catogory : Market Report

Libya’s crude oil production has recovered to 1.2 million b/d but the OPEC producer has the ability to increase output to 1.4 million b/d this year “if the security situation remains stable” the chairman of state-owned National Oil Corporation said so.Libyan oil output has recovered sharply over the past few years, with production having jumped to an over five-year high of around 1.2 million b/d late last year.

Sanalla said production at Sharara should near 300,000 b/d in the next few days, from current levels of 260,000 b/d.NOC is working on a number of initiatives to reignite Libya’s upstream sector. Sanalla said the company is reviewing its upstream portfolio, with a chance of “development and production sharing agreements potentially being announced towards the end of this year.”It is also “extensively” studying unconventional resources, looking at shale oil and shale gas prospects, Sanalla added.

“We have already progressed work in this area,” Sanalla said, without giving further details.NOC’s focus will also be on recommissioning all essential oil service companies, drilling and workover contractors in order to restore all existing shut-in wells and rehabilitate surface facilities. NOC has over 400 shut-in wells that require minor and major works. However, Sanalla remains pragmatic, emphasizing that NOC’s target to reach a production capacity of 2.1 million b/d by 2021 hinges on Libya attracting foreign investment along with a big improvement in the security situation.