LIBYA: Deputy Oil Minister, Omar al-Shakmak says country's oil industry will reach pre-war levels in the coming months
Record ID:
344180
LIBYA: Deputy Oil Minister, Omar al-Shakmak says country's oil industry will reach pre-war levels in the coming months
- Title: LIBYA: Deputy Oil Minister, Omar al-Shakmak says country's oil industry will reach pre-war levels in the coming months
- Date: 6th April 2012
- Summary: ZAWIYA, WEST OF TRIPOLI, LIBYA (APRIL 3, 2012) (REUTERS) TANKER AND VEHICLES ENTERING ZAWIYA OIL REFINERY ZAWIYA OIL REFINERY LOGO MORE OF OIL REFINERY VARIOUS OF WORKERS ON SITE PIPES RELEASING STEAM VARIOUS OF CHIMNEY RELEASING STEAM REFINING SUPERVISOR AND OPERATING MANAGER, ZAWIYA OIL REFINERY, ABDULHAFED DAW (LEFT), TALKING TO REPORTER (SOUNDBITE) (Arabic) REFINING SUPERVISOR AND OPERATING MANAGER, ZAWIYA OIL REFINERY, ABDULHAFED DAW, SAYING: "On October 2, we resumed work activity in the first unit of the refinery until October 30 when we started operating the second unit which produces up to 80 percent of past production. On November 20, we managed to restore 100 percent and returned to previous performance." VARIOUS OF ENGINEERS WORKING IN CONTROL SUPERVISION ROOM TRIPOLI, LIBYA (RECENT) (REUTERS) (SOUNDBITE) (English) LIBYAN DEPUTY OIL MINISTER, OMAR AL-SHAKMAK, SAYING: "We are now (producing) more than 80 percent of the average daily production in January 2011. Now we achieved 1.4 (million barrels) per day and we are expecting, say by the third quarter of this year, we are heading to 1.7 (million bpd) which is the daily production of January 2011." ZAWIYA, WEST OF TRIPOLI, LIBYA (APRIL 3, 2012) (REUTERS) MAN WORKING AT CONTROL ROOM VARIOUS WORK IN PROGRESS AT REFINERY WORKER CLOSING A PIPE REFINERY TRIPOLI, LIBYA (RECENT) (REUTERS) (SOUNDBITE) (English) LIBYAN DEPUTY OIL MINISTER, OMAR AL-SHAKMAK, SAYING: "There are some few issues, mainly the oil services companies still have not, you know, started their activity.. full activity and this is, you know, some because of the manpower and some others because of management issues. We tried to help and solve the problems which they are facing, mainly concerning manpower." ZAWIYA, WEST OF TRIPOLI, LIBYA (APRIL 3, 2012) (REUTERS) VARIOUS OF OIL TANKS
- Embargoed: 21st April 2012 13:00
- Keywords:
- Location: Libya, Libya
- Country: Libya
- Topics: Business,Politics,Energy
- Reuters ID: LVAMQQPTN376YGPEVQFZQQUQPT0
- Story Text: Libya's oil production is set to return to full pre-war levels in the next few months, the country's deputy oil minister said, but uncertainty about oil contracts may delay the industry's return to normal in the post-Gaddafi era.
Many oil and gas refineries across the country which stopped running during a civil war that ended Muammar Gaddafi's four-decade rule, have resumed operations after the war ended last October. One of which is Zawiya oil and gas refinery.
Rebels fighting against Gaddafi's forces seized control over the key town in August 2011. Losing the refinery, some 50 km west of Tripoli, which supplied fuel to the capital, was a huge blow to Gaddafi's forces. A few days later the rebels toppled Gaddafi and seized Tripoli.
The refinery was reopened in October and gradually resumed operations, hitting pre-war levels in November, a company official said.
"On October 2, we resumed work activity in the first unit of the refinery until October 30 when we started operating the second unit which produces up to 80 percent of past production. On November 20, we managed to restore 100 percent and returned to previous performance," said Abdulhafed Daw, refining supervisor and operating manager at the oil refinery.
According to industry estimates, the country - formerly Africa's third-largest producer - yielded about 1.6 million bpd before the civil war led to a virtual shutdown in supplies.
Deputy Oil Minister, Omar al-Shakmak told Reuters that Libya's oil output had already reached 80 percent of pre-war levels, aiming to exceed past production by this summer.
"We are now (producing) more than 80 percent of the average daily production in January 2011. Now we achieved 1.4 (million barrels) per day and we are expecting, say by the third quarter of this year, we are heading to 1.7 (million bpd) which is the daily production of January 2011," he told Reuters.
However, Shakmak admitted there were several obstacles which may hinder efforts to reach the target.
Uncertainty about oil and gas companies' contracts with Libya, soon to be scrutinized and potentially revised, will persist until new leaders take power after June elections, delaying the industry's return to normal.
The transitional government has set up a special committee to investigate allegations of widespread corruption in the oil industry before the revolution. Its determinations could lead to the withdrawal or reworking of now lucrative deals in the OPEC member, which has Africa's largest crude oil reserves.
In the June elections, Islamist and secular parties will compete for seats in a national assembly, which will draft a new constitution for the country.
Shakmak told Reuters that existing agreements with international oil companies must be examined before any new blocks or contracts can be offered.
Oil company executives say they expect the new leaders to demand that certain deals be revised. For now, while the political and legal landscape is in flux, they are keeping a low profile.
Experts say Libya lacks a solid legal framework for coping with the industry in the aftermath of the revolution. But some analysts say the forthcoming revisions may be relatively minor, and the question is whether the existing contracts be honoured. - Copyright Holder: REUTERS
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