Libya's oil production rising faster than expected

Libya’s interim Oil Minister Ali Tarhouni, bolstered by figures of the International Energy Agency, said his country should see a rise in production to 700,000 b/d by yearend, with full prewar production expected in June 2012.

“Things are going very well in the oil sector,” said Tarhouni Tarhouni’s figures were supported by the International Energy Agency, which said Libya’s oil production is resuming much faster than initially expected.

In September, IEA forecast that Libya would produce no more than 400,000 b/d by yearend, a figure that the North African country reached in October. Libya was producing more than 500,000 b/d by early November, the IEA said.

However, IEA said many constraints remain before Libya can restore its full prewar output of about 1.5 million b/d, with damage caused by heavy fighting around oil export terminals during the civil war likely to constrain output even if oil fields themselves have not been damaged.

IEA also noted the importance of US and foreign workers in the effort to increase the country’s output.

“The bulk of the restoration of production has been carried by local petroleum industry staff, with much of the foreign workforce still outside the country,” IEA said.

IEA added that the most costly and specialized repairs may have to await the arrival of workers from international oil companies—a point underlined by a spokesman of the Arabian Gulf Oil Co. (Agoco).

The Agoco spokesman said the firm’s production could return to its prewar level of 425,000 b/d by June 2012, but that the ramp-up is also facing challenges, including the lack of workers.

Production at the Hamadi and Beida fields is currently at 7,000 b/d, well below the prewar output of 30,000 b/d. The spokesman said that the return to normal was delayed because the fields’ cars were stolen, impeding the transportation of workers back to the site.

In addition, he said that international drilling contractors have also not sent back foreign staff, out of security concerns and because their rigs were looted.

Meanwhile, Tarhouni said the main challenge of Libya’s incoming government will be to establish functioning security services, not major economic decisions.

“I don’t anticipate that this transitional government will make major decisions” on the economy, Tarhouni said. I don’t expect, for example, that this transitional government will give new concessions for oil.”

Libya’s new government is being formed by Prime Minister Abdurrahim el-Keib, who expects it to be in place in 2 weeks or so. El-Keib’s government will remain in place until June 2012, the deadline for electing a 200-member national assembly that would choose a new prime minister.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Watching Government: New York moves ahead on LNG

02/16/2015 New York, a state more often associated with fiercely resisting unconventional natural gas exploration and production, established a program to reg...

BHI: US rig count continues 11-week dive, loses 98 more units

02/13/2015

The US drilling rig count plunged 98 units to settle at 1,358 rigs working during the week ended Feb. 13, Baker Hughes Inc. reported.

Vaalco reports results from Etame 10-H development well

02/13/2015 Vaalco Energy Inc., Houston, reported start of production from its Etame 10-H development well, the second such well drilled from the recently inst...

Partners submit Johan Sverdrup development plan

02/13/2015 Partners Statoil ASA, Lundin Petroleum AB, Petoro, Det Norske Oljeselskap ASA, and Maersk Oil have submitted a plan for development and operation (...

Apache’s 2015 capital budget less than half of last year’s $8.5 billion

02/12/2015 Apache Corp., Houston, plans a capital budget of $3.6-4 billion in 2015, with $2.1-2.3 billion directed toward onshore North America and $1.5-1.7 b...

Wintershall applies steam flooding to Gildehaus sandstone at Emlichheim

02/12/2015

Wintershall Holding GMBH reported steam flooding at 300° into Gildehaus sandstone at Emlichheim oil field in Germany.

Five fatalities, four missing now confirmed following FPSO explosion offshore Brazil

02/12/2015 BW Offshore now reports five fatalities—all employees of BW Offshore—and four crew members missing following the Feb. 11 explosion of the Cidade de...

BW Offshore confirms fatalities after FPSO vessel explosion

02/11/2015 Natural gas production has been halted following an explosion that occurred shortly after midday Feb. 11 onboard a floating production, storage, an...

PNR cuts capital spending nearly in half

02/11/2015 Pioneer Natural Resources Co. (PNR), Dallas, plans to spend $1.85 billion in 2015 following a fourth quarter in which the company reported a net in...
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