Libya nears pre-war output, unrest at Agoco

Production at 1.5 million bpd, protests at Agoco offices

Libya Oil Minister Abdulrahman Ben Yezza. GETTY IMAGES
Libya Oil Minister Abdulrahman Ben Yezza. GETTY IMAGES

Libya’s oil industry continues to recover towards its pre-war peak, pumping 1.5 million barrels a day (bpd), but civil disturbances at a key oil company demonstrate that the sector remains unstable.

Oil minister Abdulrahman Ben Yezza says Libya is now pumping 1.5 million bpd, up from 1.4 million barrels in March. Be Yezza believes the country will export 1.29 million bpd of oil. The country could start pumping about 1.6 million barrels a day by midyear, he told reporters at an oil and gas conference in Tripoli.

Meanwhile, in the Eastern city of Bengazi, a crowd of 50 protestors shut the offices of region’s state oil company Agoco, according to a Reuters report.

Agoco is responsible for Libya’s most prolific fields in the Sirte basin, including the 200,000 bpd Sarir field, and procuded 450,000 bpd before the war. The company also manages two refineries and a marine oil terminal at Tobruk.

Protestors are demanding greater transparency over the money Agoco is receiving and spending. According to an Agoco spokesman, at least some are also clamouring for jobs, as expectations amongst Libya’s young male population – many of whom fought Gaddafi forces– remain high.

Agoco was responsible for keeping rebel fighters in oil during the war, and struck deals to sell crude to Qatar and import petroleum via independent trader Vitol to ensure rebels would not be cut off from crucial fuel supplies. The state company has committed to allow Vitol to lift half its early crude production in order to pay down a $1 billion slate built up for fuel supplies during the war.

Libya’s interim National Transitional Council is steering the country towards national elections in June, and is in the process of reviewing the existing oil contracts signed for oil concessions throughout the country.Libya’s oil industry continues to recover towards its pre-war peak, pumping 1.5 million barrels a day (bpd), but civil disturbances at a key oil company demonstrate that the sector remains unstable.

Oil minister Abdulrahman Ben Yezza says Libya is now pumping 1.5 million bpd, up from 1.4 million barrels in March. Be Yezza believes the country will export 1.29 million bpd of oil. The country could start pumping about 1.6 million barrels a day by midyear, he told reporters at an oil and gas conference in Tripoli.

Meanwhile, in the Eastern city of Bengazi, a crowd of 50 protestors shut the offices of region’s state oil company Agoco, according to a Reuters report.

Agoco is responsible for Libya’s most prolific fields in the Sirte basin, including the 200,000 bpd Sarir field, and procuded 450,000 bpd before the war. The company also manages two refineries and a marine oil terminal at Tobruk.
Protestors are demanding greater transparency over the money Agoco is receiving and spending. According to an Agoco spokesman, at least some are also clamouring for jobs, as expectations amongst Libya’s young male population – many of whom fought Gaddafi forces– remain high.

Agoco was responsible for keeping rebel; fighters in oil during the war, and struck deals to sell crude to Qatar and import petroleum via independent trader Vitol to ensure rebels would not be cut off from crucial fuel supplies. The state company has committed to allow Vitol to lift half its early crude production in order to pay down a $1 billion slate built up for fuel supplies during the war.

Libya’s interim National Transitional Council is steering the country towards national elections in June, and is in the process of reviewing the existing oil contracts signed for oil concessions throughout the country.
 

 

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