Agoco to restart two refineries by late September

Libya’s state-owned Arabian Gulf Oil Co (Agoco) said it will resume operations at its two refineries by late September, coinciding with the start-up of production at the Sariri and Mesla oil fields.

“When we have the production, we can restart them. It will be end of September or slightly before,” said an Agoco spokesman, who also said the firm plans to start output from the two eastern fields on Sept. 15.

“The technicians have left already to the fields,” said the spokesman. The two refineries, which are in the Sarir field and at the export terminal of Tobruk, have a combined capacity of 30,000 b/d.

The announcement coincided with a report made by the chairman of Libya’s National Oil Corp. that the country’s oil production will not return to prewar levels until late next year at the earliest.

Many of the country’s oil facilities are reported to have suffered heavy damage and looting during the recent conflict between rebels and forces loyal to Libya’s leader Moammar Gadhafi.

Nuri Berruien, the newly appointed NOC chairman, said it would be late 2012 or early 2013 before the country was again producing the 1.6 million b/d it had prior to the uprising against Gadhafi.

While some production from the country’s eastern fields should begin this month, Berruien said that the initial oil output will be measured in the tens of thousands of barrels per day rather than in the hundreds of thousands.

In what he called an optimistic forecast, Berruien said Libya can reach the prewar level of 1.6 million b/d in 15 months as damage has affected only support infrastructure and not the main production facilities.

He said the main concern is focused on the country’s export terminals, with Brega badly damaged by pro-Gaddafi forces and by bombs of the North Atlantic Treaty Organization. Also badly damaged, Berruien said, was Es Sider where the control room was totally destroyed, along with three storage tanks.

Analyst IHS Global Insight said that Berouin's assessment is “significantly less optimistic than some of his superiors in the Transitional National Council, which is setting up a post-conflict government in Libya, although no doubt more realistic.”

Last month, Libya’s rebel government estimated that the country’s initial oil exports could resume in 2-3 weeks, with full production coming in a year or so.

Ali Tarhouni, the rebel official in charge of financial and oil matters, said the estimate of NOC is that about 500,000-600,000 b/d can be online in 2-3 weeks.

Tarhouni, who expressed the expectation that the country can ramp up to full production of 1.6 million b/d within a year or so, said damage on most of Libya’s oilfields from the civil war has been minimal.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

FERC approves Constitution pipeline to move Marcellus gas northeast

02/10/2015 The Marcellus and Utica natural gas plays have made headlines for years, but moving the gas to end users to the East has not been easy due to a lim...

Pennsylvania contemplates tax hikes to fix $2 billion deficit

02/10/2015 A severance tax on unconventional natural gas development and production is likely to be part of Pennsylvania Gov. Tom Wolf's scheduled Mar. 10 bud...

Accenture: Eagle Ford operators cut costs with integrated planning, better logistics

02/10/2015 Accenture examined the importance of integrated planning and logistics as a way to save money for operators in the South Texas Eagle Ford, a region...

Unconventional plays continue driving US production

02/10/2015 Output from unconventional projects is expected to account for much of the anticipated US production growth during 2015 although falling crude oil ...

Williams, DCP start gas flow from Keathley Canyon Connector

02/10/2015 Williams, through its general partner ownership of Williams Partners, and DCP Midstream Partners LP have started operations from their newly extend...

Senators’ bill aims to curb flaring by expediting permit process

02/09/2015 North Dakota and Wyoming’s US senators introduced legislation that aims to capture methane and reduce flaring by expediting procedures for obtainin...

MOL, Transpetrol complete Hungary-Slovakia crude line expansion

02/09/2015 MOL Group and Transpetrol AS finished reconstruction and capacity expansion of the Friendship I-Adria oil pipeline leg between Szazhalombatta, Hung...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

NCOC lets $1.8-billion pipeline contract for Kashagan field

02/06/2015 North Caspian Operating Co. (NCOC) has let a $1.8-billion engineering and construction contract to ERSAI Caspian Contractor LLC, a subsidiary of Sa...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected