Libya – Oil production to rise to 700 thousand barrels per day

After a blackout in power in areas of Libya caused a dip in the country’s oil production, flows rebounded allowing Libya to see production rates of 700,000 barrels per day.
The blackout occurred after an unspecified group of people closed the valve of a natural gas pipeline that feeds the Zawiya power station in the western region. In addition the attacks on power stations and national utilities also contributed to the increase and the continued failures of electricity.
Electricity is returning gradually to fields in western Libya and production should increase further as electricity is restored at more fields.
Libya, with Africa’s largest crude reserves, is trying to revive its oil production in spite of political turmoil and conflict among armed forces competing to control the nation’s energy assets.
It reopened two of its biggest fields last month, as well as two oil terminals that had been closed for two years. Libya is still pumping far less than the 1.6 Million B/D it produced before a 2011 uprising that set off years of instability.
Libya plans to almost double output this year 2017. Additional increases in its production will put pressure on the Organization of Petroleum Exporting Countries and other major suppliers that agreed to pump less crude starting this month in a joint effort to end the oil glut.
OPEC exempted Libya from cutting as the nation tries to restore its crude production and exports.

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