Libya sets new oil output target

Thanks to the political appeasement it has been experiencing for a few months, Libya is allowing itself to dream and wants to more than double its production by next year. For this fact, the country has sought the support of its historical partner, TotalEnergies.

On Saturday in Paris, Libyan Oil Minister Mohamed Oun (pictured) said the country hoped to increase oil production to 4 million barrels a day within a year. The initial target for next year was about 2 million barrels per day.

To achieve this, the Libyan authorities are counting on the production of several existing projects with the return of companies that left the country during the war, but also on France. Indeed, contracts have been signed with TotalEnergies to put back into service some of the oil fields destroyed over the last ten years.

Among these perimeters, the Mabrouk field, whose production exceeds 40,000 barrels per day, will soon be developed by the French giant. It is a colossal project that, if successful, should make Libya the largest oil producer in Africa and one of the largest in the world.

Although it is exempt from reducing production quotas, the country could mainly face restrictions from the Organization of Petroleum Exporting Countries (OPEC), of which it is a member, as the cartel seeks to balance its supply.

The oil minister said the project aims to pull the country out of a decade of chaos and conflict and revive a moribund national economy. Mohamed Oun recalled that at the same time, efforts are underway to develop oil infrastructure and modernize facilities in order to secure a greater share of the refining and export market in the world.

The TotalEnergies Group has been present in Libya since 1954. In 2018, the group’s production in the country averaged 63,000 barrels per day.

Source: Agence Ecofin

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: