The restoration of Libya’s oil production hit a landmark yesterday as the National Transitional Council (NTC) confirmed that national output had reached 500,000 barrels per day (bpd).
“As of an hour ago we are up to 500,000 barrels per day with the Sharara field resuming operation,” NTC finance minister with responsibility for oil Al Tarhouni told a news conference in Benghazi yesterday, according to Reuters.
The Sharara field is now estimated to be pumping 70,000 bpd from its initial start-up level of 30,000 bpd, still far short of its pre-war level of 360,000 bpd. National production remains less than a third of its pre-war level of 1.6 million bpd.
Repsol says the field has suffered extensive looting and some damage to buildings, a similar fate to Eni’s adjacent Elephant field, where logistical and transport equipment was seized by pro-Gaddafi militias and there have been conflicting reports about the level of damage to facilities.
An Eni official had told Reuters a month ago that “we cannot promise the field will start producing before the end of the year. Qaddafi’s militia destroyed everything,” though the latest report from Eni from Dow Jones Newswires says the company thinks a restart in November is possible.
Libyan production is currently down to local engineers willing to take personal risks to get crude flowing for export, protected by ex freedom fighters loyal to the NTC. Further improvement in Libya’s production will require the re-entry of hundreds of foreign oil engineers, who are being held back by their firms on safety grounds.
In other news, BP’s CEO said the firm was “definitely” eyeing a return to exploration in Libya.
Speaking in a press conference after the announcement of BP’s third quarter results, Dudley said “we are absolutely planning to go back in and all the signals are that people want us to and expect us to come back.”
The company holds the rights to a $900 million exploration deal for the Western desert which was the company’s largest single exploration commitment at that time.
