LIBYA: New oil minister, Abdulrahman Ben Yazza, says pre-war oil production levels can realistically be achieved by the end of 2012

Record ID: 344107

  • Title: LIBYA: New oil minister, Abdulrahman Ben Yazza, says pre-war oil production levels can realistically be achieved by the end of 2012
  • Date: 1st December 2011
  • Summary: TRIPOLI, LIBYA (NOVEMBER 30, 2011) (REUTERS) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, BEING INTERVIEWED LIBYAN FLAG ON DESK NEXT TO A PHONE (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "I would say within one year's time we should have complete plan on what we do production, exploration down stream human resources, HSC, all these issues." BEN YAZZA LISTENING TO A QUESTION (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "The challenge is, of course, getting all the people back to their locations, reestablishing the transportation means and further securing the locations. I have to start with appreciating the effort that has been made to reach this production at this time, and I think all this stems from the enthusiasm and eagerness of people to get back to normal." BEN YAZZA'S HAND ON HIS THIGH (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "Tell them that we are back in business, we want to have our share, we have place ourselves again into OPEC and produce our quota." BEN YAZZA LISTENING TO A QUESTION (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "The plan and thoughts are there to, of course, to enhance the production and increase the recovery factors from the reservoirs we are producing, and definitely there will be further studies to see the downstream area, so definitely there will be a lot of studies to evaluate all these issues, and come up with a plan that can be executed." JOURNALIST TAKING NOTES (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "There is security now in the fields -- the proof is the production, so I cannot give you the details, because it would be premature to announce the details, but all effort is being made to collectively make sure that the fields are secure and all the service companies and the foreign companies can resume their operations in the field." LIBYAN FLAG, OIL LOGO FLAG ON DESK (SOUNDBITE) (English) LIBYAN OIL MINISTER, ABDULRAHMAN BEN YAZZA, SAYING: "So at the moment it is not approved, this proposal, so we have to take our time to come up with the best, because what we are doing now is setting the base for the future of the oil business." BEN YAZZA BEING INTERVIEWED
  • Embargoed: 16th December 2011 12:00
  • Keywords:
  • Location: Libya, Libya
  • Country: Libya
  • Topics: Economy
  • Reuters ID: LVA57PWHTF23PUXSTSKI512KM80E
  • Story Text: Libya's target of reaching pre-war oil output levels by the end of 2012 is feasible, the country's new oil minister, Abdulrahman Ben Yazza, said on Wednesday (November 30).
    The former head of a joint venture with Italy's Eni, Ben Yazza was appointed to the interim government last week and will have the task of restoring output and reshaping a sector weighed down by corruption and inefficiency under former Libyan leader Muammar Gaddafi.
    "I would say within one year's time we should have complete plan on what we do production, exploration down stream human resources, HSC, all these issues," Ben Yazza said in his first interview since his appointment.
    Asked what Libya would tell the Organisation of the Petroleum Exporting Countries (OPEC) at its December 14 meeting, he said Libya would be sending a clear message.
    "[I will] tell them that we are back in business, we want to have our share, we have place ourselves again into OPEC and produce our quota," he said.
    As for a potential shake-up of the Libyan oil sector that could change the balance of power between the oil ministry and the National Oil Corporation (NOC), Ben Yazza said there would be not be an aggressive reorganisation, but there were still difficulties to surmount.
    "The challenge is, of course, getting all the people back to their locations, reestablishing the transportation means and further securing the locations. I have to start with appreciating the effort that has been made to reach this production at this time, and I think all this stems from the enthusiasm and eagerness of people to get back to normal," he said.
    Before Libya's February uprising, it pumped 1.6 million barrels per day (bpd), but civil war brought flows to a standstill, cutting off exports of around 1.3 million bpd of its light, easy to refine crude to the international market.
    Libyan oil output has climbed back to 840,000 bpd, the NOC said in a statement on Wednesday.
    Ben Yazza said that he would be working on plans to increase production beyond pre-conflict levels, and that he expected to have those plans ready within a year.
    "The plan and thoughts are there to, of course, to enhance the production and increase the recovery factors from the reservoirs we are producing, and definitely there will be further studies to see the downstream area, so definitely there will be a lot of studies to evaluate all these issues, and come up with a plan that can be executed," he said.
    Ben Yazza said progress had been made in improving security at oilfields and energy infra-structure, essential to prevent attacks by insurgents.
    Good security is a condition for foreign operators to send back their expatriate staff.
    "There is security now in the fields -- the proof is the production, so I cannot give you the details, because it would be premature to announce the details, but all effort is being made to collectively make sure that the fields are secure and all the service companies and the foreign companies can resume their operations in the field," he said.
    A member of Libya's interim government told Reuters in September it was drafting a proposal that would give more power to the oil ministry and shrink the responsibilities of the NOC to make it a purely commercial organisation.
    This would be a change from the system under Gaddafi where the NOC handled both the daily operations of the oil sector and represented Libya on the world stage at OPEC meetings.
    Ben Yazza said the proposal would be thoroughly reviewed.
    "So at the moment it is not approved, this proposal, so we have to take our time to come up with the best, because what we are doing now is setting the base for the future of the oil business," he said.
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