20/01/2022 by Mark
Following a difficult period, Libya’s energy minister, Mohammed Oun, said daily production was around 1.2 million barrels per day (bpd), which is roughly what it was before a series of closures and shutdowns hit the OPEC member towards the end of 2021.
The problems began in mid-December, when political and pay disagreements led to militia shutting down the country’s west fields. This was further exasperated when a major pipeline needed to be taken offline for repairs, followed by the closure of some of the eastern ports due to poor weather conditions. On some days, oil production was as low as 700,000 bpd.
Oun’s comments seem to indicate the problems have been mostly resolved, although Bloomberg quotes an unnamed source as saying that the Mellitah, Farwah, Bouri and Zawiya western facilities are still closed.
Libya has struggled to restore and maintain consistent production since the 2011 civil war, with aging infrastructure often limiting its progress. It has the largest oil reserves in Africa and is highly desirable for operators due to production costs being as little as $1 per barrel in some fields. It is also conveniently located for the European markets.
In November last year, Eni and TotalEnergies, which makes Total lubricant products, said they were ready to invest billions in the country. TotalEnergies alone is planning to invest $2 billion in the Waha oil project in Libya, which should produce around 100,000 barrels a day. The country aims to raise production to at least two million bpd within six years.
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