The OPEC+ group is facing a further challenge with Libya’s return to 1.25 million barrels per day (bpd) of production – the same level it had before General Khalifa Haftar’s Libyan National Army enforced an eight-month-long blockade on many of the country’s oil fields and terminals over disagreements about the distribution of energy revenue.
The blockade caused Libya’s oil production to plummet to around 100,000 bpd, which has helped the OPEC+ group in rebalancing supply to stabilise the oil market. While Libya is a member of OPEC, it is currently exempted from production quotas due to its issues with maintaining production, and according to Mustafa Sanalla, the Chairman of Libya’s National Oil Corporation (NOC), it will not be brought into the deal until production reaches a consistent 1.7 million bpd.
Sanalla also says that the country’s production should reach 1.3 million bpd soon, which would be the maximum capacity for now. He also congratulated everyone involved in restoring production levels amid challenging conditions:
“The National Oil Corporation and its companies, even during the period of closures to this moment, have not and will not stop working hard, and I appreciate the great efforts made by the production, maintenance and project departments, and the efforts of all employees in oil fields and sites throughout Libya.”
Sanalla added that he looked forward to continuing to engage with French oil and lubricant company Total, which is reportedly considering extending its investments in the Libyan oil industry and potentially raising production levels.