Libya plans to double oil production in 2017

Category: Markets 888
Libya oil export
Libya oil export

Libya plans to double oil production in 2017, despite of attempts of OPEC to limit the output. The African country has the largest reserves of crude oil among OPEC members and currently produces about 600,000 barrels per day, but aims to increase production to 900,000 barrels per day until the end of 2016 and to 1.1 million barrels per day in 2017, according to the head of state corporation National Oil Corp, Mustafa Sanalla.

Libya aims to increase production and exports after in September National Oil Corp agreed with Khalifa Haftar, the commander of the armed forces, which control some of the most important oil ports. Thanks to this transaction on September 21, the state managed to export 781,000 barrels from port Ras Lannoo, which was the first international cargo from this terminal after being declared force majeure in December 2014. The largest Libyan port of Es Sider, will be able to resume activity on exports of raw materials within several days.

Libyan policy is opposing the attempts of OPEC to curb oil production in order to cope with the low prices of resource. The Brent oil price fell to about 47 USD per barrel, while the price reached 115 USD per barrel in June 2014.

Libya, Nigeria and Iran disagree with the deal of OPEC, which was settled in September in Algeria. The actions of the three countries forced other oil producing countries to cut even more planned oil production if they want to deal with the prices. The next meeting of the cartel is scheduled for November 30 in Vienna, where they will be led discussions on reducing the supply of raw material.

“Libya is in front of economic revival, but any military attack on oil installations could derail plans to increase the extraction of crude oil”, said also Mustafa Sanalla.

Libya produced 1.6 million barrels per day before the events of 2011, which led to the end of the long regime of Muammar Gaddafi. The oil production fell drastically after international oil companies withdrew from the country, because of armed clashes erupted between government and local groups. The conflict negatively affected the possibility of the country to export crude through its ports. The port in Es Sider did not export oil since they had declared force majeure.

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