Page 10 - AfrOil Week 33 2022

AfrOil PERFORMANCE AfrOil

Libya is currently extracting about 1.2mn bpd of crude (Image: Waha Oil Co.)

NOC plans to raise Libya’s crude

production to 2mn bpd in 3-5 years

LIBYA LIBYA’S National Oil Corp. (NOC) has said that southern Libya’s Fezzan province earlier this
the country’s crude output is expected to reach week over demands for rights and government
2mn barrels per day (bpd) within the next three care following a fuel tanker explosion last week
to five years, up from the current level of 1.2mn in the Bint Baya area of Sabha city, the capital of
bpd, as production facilities regain their full the province, which suffers from a lack of hospi-
working capacity and investments are made to tals and other necessary facilities.
increase yields. The protests were led by the Fezzan Anger
The newly appointed head of the state-owned Movement, which fights for the rights of resi-
company, Farhat Bengdara, said several private dents of the government-neglected province.
firms would take part in the effort to develop a Fezzan has no proper infrastructure or services.
medium-term plan for reaching that target. The fuel tank explosion killed 22 people and
The country’s crude production returned to injured dozens. The injured were not able to
its previous level of 1.2mn bpd in July, after the obtain health facilities in the province, prompt-
lifting of force majeure at production sites and ing popular protests that threatened to disrupt
export terminals a month earlier. This return to the country’s oil sector.
higher production levels occurred after nearly Southern Libya is particularly affected by
three months of intermittent closures due to poor services and a lack of investment. The
protests and political struggles over control of explosion sheds light on the gasoline crisis in the
oil production and exports. oil-rich region, where fuel supplies are scarce,
Before July, Libya’s crude output had hit a smuggling operations flourish and gasoline is
two-year low of 650,000 bpd, as force majeure sold to citizens on the black market at skyrock-
was declared on loadings out of the Es Sider, Ras eting prices.
Lanuf, Brega and Zueitina terminals, as well as During the protests, roads leading to the Sha-
production operations at the El-Feel (Elephant) rara oilfield were shut by demonstrators, and the
and Sharara fields. unrest reportedly threatened to overflow into
Meanwhile, armed clashes between rival other oil facilities in other cities.
factions have continued in the war-torn coun- It remains unclear whether the protests could
try. There are currently two factions angling lead to real changes in fuel supply conditions.
for control over a larger portion of the country; But unrest could affect efforts to raise crude
one is the UN-backed Government of National production.
Unity (GNU) in the west, and the other is the Libya relies primarily on oil revenues. Its oil
self-styled Libyan National Army (LNA) in the sector represents 95% of export earnings and
east, led by Khalifa Haftar. 60% of GDP. The country’s potential for eco-
nomic diversification hinges on the recovery of
Fezzan fuel protests other sectors that depend at least partially on oil
In related news, protests erupted again in and gas, including agriculture and industry. ™

P10 www. NEWSBASE .com Week 33 18•August•2022