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Tag: oil production

Acting NOC Chief Reveals Strategic Plan to Boost Production and Enhance Transparency

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The Chairman of the National Oil Corporation, Masoud Suleiman, told Reuters on Friday that the corporation will focus on increasing production and enhancing transparency as Africa’s second-largest oil producer seeks to recover from years of instability.

The state-owned corporation oversees fossil fuel production, which has been disrupted since the ousting of leader Muammar Gaddafi in 2011 due to conflicts. Production also declined multiple times last year amid disputes among rival factions, including over the leadership of the Central Bank of Libya, which controls the country’s crude oil revenues.

In response to emailed questions, Suleiman stated, “The National Oil Corporation has a strategic plan to increase production, and we will continue implementing it while making necessary adjustments whenever required.”

According to the corporation, NOC’s oil production reached approximately 1.4 million barrels per day by the end of 2024, while the country’s long-term goal is to achieve 2 million barrels per day.

Last month, Oil Minister Khalifa Abdel-Sadeq told Reuters that Libya needs between $3 billion and $4 billion to reach a production level of 1.6 million barrels per day.

Suleiman also emphasized his focus on enhancing transparency within NOC, which may include streamlining operations and potentially closing some offices.

NOC fully owns 15 subsidiary companies, according to its online platform, in addition to holding shares in joint ventures and other supervised companies.

“Above all, I will focus on establishing transparency within the corporation so that any investor, whether the state or our foreign partners, can have a high level of confidence that any funds injected into the National Oil Corporation will be used in the best possible way,” Suleiman stated.

Referring to NOC’s procurement arm responsible for acquiring equipment and other services for oil field operations, he added, “I am still working on forming a complete picture of what has been accomplished in some companies, such as the Mediterranean Oil Services Company.”

Suleiman indicated that he would take a cautious approach in evaluating and potentially closing some branches, particularly those that were recently established.

The Mediterranean Oil Services Company has offices in Düsseldorf, Germany, and since 2020, in Dubai. Libyan media reported that it also opened an office in Istanbul last year.

Suleiman noted that closing some offices could simplify the company’s administrative structure, making it easier to manage in the future.

He also stated that he is in contact with the Libyan Attorney General regarding a request to halt the crude oil swap program, which NOC had used as an alternative financing method by exchanging crude oil for fuel.

Suleiman stressed that he will work with the Central Bank of Libya and the Tripoli-based Government of National Unity to establish an appropriate mechanism for securing a sufficient budget to ensure a stable supply of refined petroleum products across the country.

His comments to Reuters mark the first public confirmation of potential office closures and his first remarks on the Attorney General’s decision to halt NOC’s use of crude oil swaps for fuel.

Global Platts: Oil Shutdown in 2025 Signals More Chaos in the “Mafia State”

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Global Platts, the British agency, revealed part of its 2025 commodities series today, also focusing on the oil and gas sector.

According to the agency, Libyan oil production rose in November to 1.17 million barrels per day, according to estimates from Standard & Poor’s Global Commodity Insights. This is the highest production figure since October 2022. However, considering the volatile security situation and the fractured policies in the country, the recovery is unlikely to last long, according to Libya observers.

The British agency stated that Libya holds the largest reserves of oil and gas in Africa, but it has been mired in chaos since the overthrow of Muammar Gaddafi in 2011 and has not yet recovered. In 2014, the country was divided between two competing governments in the west and east.

The agency noted that following a weeks-long oil shutdown due to a dispute over the leadership of the Libyan Central Bank, which ended in early October, oil production rose.

Analysts stated that the vital sector will remain at the mercy of political actors in the coming year.

A source from the oil and gas sector in Tripoli, who requested anonymity, said: “If anyone understands what will happen politically in 2025, they will understand what will happen in the oil and gas sector. The National Oil Corporation wants to say that production is rising and things are stable, but 2025 will be similar to 2024.”

The agency confirmed that key issues on the agenda include negotiations between the National Oil Corporation and foreign companies about major projects, the impact of Syrian President Bashar al-Assad’s fall on political stability in Libya, and the fragile ceasefire between Prime Minister Abdul Hamid Dbeibah and Libyan National Army Commander Khalifa Haftar in the east of the country.

Prominent analyst at Verisk Maplecroft, Hamish Kinnear, stated that 2025 presents mixed prospects for Libya’s oil and gas sector. On one hand, Libya’s production reaches record levels, global oil companies resume exploration, and the sector sees its best performance since the 2011 civil war. On the other hand, the recent central bank crisis and oil and gas shutdowns, along with Libya’s entrenched political conflict, could lead to sudden disruptions in the country once again, according to the British agency.

Bloomberg: Libya’s Daily Oil Production Reaches Highest Level in 11 Years

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Bloomberg reported on Friday that Libya’s oil production has surged to its highest daily level in 11 years, just months after a political crisis significantly reduced the country’s output.

According to the National Oil Corporation (NOC), crude oil and condensate production reached 1.422 million barrels, exceeding the corporation’s target by about 22,000 barrels. This marks the highest daily production since 2013, as per NOC data.

The agency highlighted this as a remarkable turnaround for Libya’s oil output this year. In August, disputes between rival governments in the country’s east and west halved production, sparking fears of renewed conflict. However, the two sides reached a resolution a month later. Libya is now planning to launch its first energy exploration tender since the 2011 civil war that ousted leader Muammar Gaddafi.

Bloomberg noted that the production increase is encouraging the return of foreign labor to Libya. Years of instability had caused significant fluctuations in output, limiting revenues. Power struggles further compounded neglect in developing or upgrading oil infrastructure.

The report emphasized that the production boost comes at a challenging time for OPEC, of which Libya is a member. On Thursday, OPEC and its allies postponed production increases for three months amid declining demand in China and rising supplies from the Americas.

Although Libya is exempt from OPEC’s production cap system, its output contributes to the group’s overall performance and adds to global supply, Bloomberg concluded.

Bloomberg: Libya Contributes to Increasing OPEC’s Production for the Second Consecutive Month

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Bloomberg reported today, Tuesday, that Libya accounted for most of the increase in oil production for the Organization of Petroleum Exporting Countries (OPEC) for the second consecutive month.

Bloomberg confirmed that OPEC produced more than 27 million barrels of crude oil per day in November, an increase of 120,000 barrels compared to October, following Libya’s recovery of its disrupted production.

The agency added that Libya’s production increased by about 110,000 barrels, reaching 1.14 million barrels per day, the highest level since July, after the restart of the Sharara oil field in October.

Nova Agency: Restoring Libya’s Oil Production to Pre-2011 Levels is Essential

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The Italian Nova agency reported today, Tuesday, that Eni plans to significantly increase gas production in Libya starting from the end of 2026.

Martina Opizzi, Eni’s North Africa and Middle East Area Manager, stated during a roundtable on energy and infrastructure between Libya and Italy, organized yesterday in Rome by Energy Capital & Power, that gas production is expected to start by the end of 2026 and will reach 750 million cubic feet per day at full operation. This increase will be necessary not only to meet local needs in Libya but also to support exports to Europe.

Opizzi announced that by 2025, the “Sabratha Compression” project will be launched, which is a new initiative aimed at further increasing production, providing the country with nearly 100 million cubic feet of gas per day. These projects also include a crucial sustainability element, as Eni is committed to reducing its carbon footprint through gas storage initiatives.

Opizzi emphasized the importance of creating a competitive environment for service contracts in Libya.

She stated that it is essential to achieve stability, increase production, and restore it to pre-2011 levels, referring to Eni’s efforts to ensure sustainable growth in energy production even during the most challenging times for Libya.

Opizzi pointed out that exploration activities have begun in the Ghadames Basin and that they have never stopped considering Libya a critical area for oil and gas production.

She continued by saying that they believe there are still resources to be discovered and that they also plan to conduct offshore exploration in the near future, in addition to the fact that Libya is a strategic country in the energy market due to its vast natural resources.

Bloomberg: Oil Production to Gradually Halt Nationwide

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The American news agency Bloomberg reported today, Tuesday, that Libyan oil production continues to decline as authorities in eastern Libya impose the closure of oil fields, exacerbating the crisis that the United Nations has warned could lead to economic collapse.

Bloomberg noted that production at the El Feel oil field in southwestern Libya has stopped, according to individuals familiar with the matter.

Sources told Bloomberg that oil pumping will be gradually halted across the country.