The lifting of the blockade in Libya continues to yield benefits for the countries oil industry, which was brought almost to a standstill for eight months when oilfields and ports were blockaded in January 2020.
The country’s Sirte Oil and Gas Production and Processing Company has even managed to almost double its output. Following the work over of 24 wells and increases in well productivity, the company now produces 100,000 barrels per day (bpd) of crude oil. Considering that it produced an average of 55,000 bpd before the blockade, this represents an unprecedented rise in such a short period, especially given the delicate situation in the country.
While Libya’s return to rising oil production will present extra challenges to the OPEC+ group’s efforts to keep the oil markets balanced, it should have very real effects for the Libyan people in terms of better living standards. In a website post, the United Nations said:
“The ceasefire that halted Libya’s civil war in October has begun to pay economic dividends that should improve living standards for ordinary Libyans, with a first central bank board meeting in five years and a full resumption of oil production helping to build momentum for political change.”
Multinational oil majors are also again looking at investing in the country. Total, which also makes lubricant products, already has stakes in several fields in the country, and it is looking to invest more in future, with it reportedly working with Libya’s National Oil Corporation to raise the country’s oil production further.