- Title: Opening of Libyan oil ports leads to boost in production
- Date: 30th September 2016
- Summary: BENGHAZI, LIBYA (SEPTEMBER 29, 2016) (REUTERS) VARIOUS EXTERIORS OF LIBYA'S ARABIAN GULF OIL COMPANY HEADQUARTERS AGOCO CHAIRMAN, MOHAMED SHATWAN WALKING INTO OFFICE / SITS ON DESK LIBYAN FLAG AND COMPANY FLAG (SOUNDBITE) (Arabic) AGOCO CHAIRMAN, MOHAMED SHATWAN, SAYING: "Arabian Gulf's oil output is at 290,000 barrels per day and is expected reach 300,000 barrels by tomorrow. We plan on maintaining the 300,000 bpd levels, and afterwards we will raise that to 350,000 bpd. We have an ambitious plan under which it is possible after a period to reach 400,000 bpd, but this would require a significant period of time, and a return of foreign oil companies." INTERVIEW IN PROGRESS (SOUNDBITE) (Arabic) AGOCO CHAIRMAN, MOHAMED SHATWAN, SAYING: "Bayda field remains closed as it has a technical problem at Ras Lanuf, Nafura started output but has not yet reached the desired result, at 22,000 bpd, but can produce up to 40,000 bpd. This will all depend on the availability of spare parts, and maintenance work as well as the return of foreign companies." SHATWAN USING COMPUTER (SOUNDBITE) (Arabic) AGOCO CHAIRMAN, MOHAMED SHATWAN, SAYING: One of the fields was damaged and destroyed by Gaddafi's forces during the February 17 revolution, and we haven't been able to fix it until now. It needs major foreign companies, but they are unable to do so because of the security situation." SHATWAN USING HIS MOBILE PHONE (SOUNDBITE) (Arabic) AGOCO CHAIRMAN, MOHAMED SHATWAN, SAYING: "We ask on this occasion that all foreign companies return to work in Libya and carry out a security assessment, because honestly if they do not, then we must find alternative solutions." OFFICE BUILDING CORRIDOR
- Embargoed: 15th October 2016 04:45
- Keywords: Libya oil AGOCO export National Oil Corportation NOC
- Location: BENGHAZI, LIBYA
- City: BENGHAZI, LIBYA
- Country: Libya
- Topics: Commodities Markets,Economic Events
- Reuters ID: LVA00151R9VT3
- Aspect Ratio: 16:9
- Story Text: Libya's Arabian Gulf Oil Company (AGOCO) has increased production to 290,000 barrels per day, its chairman said on Thursday (September 29), and hopes to reach 350,000 bpd by the end of the year.
AGOCO, a subsidiary of the National Oil Corporation (NOC) that operates mainly in eastern Libya, has boosted its output from about 150,000 bpd since military commander Khalifa Haftar took control of some of the country's main oil terminals from a rival force on Sept. 11-12.
"Arabian Gulf's oil output is at 290,000 barrels per day and is expected reach 300,000 barrels by tomorrow. We plan on maintaining the 300,000 bpd levels, and afterwards we will raise that to 350,000 bpd. We have an ambitious plan under which it is possible after a period to reach 400,000 bpd, but this would require a significant period of time, and a return of foreign oil companies," AGOCO Chairman Mohamed Shatwan told Reuters in an interview.
Following the takeover, the NOC opened three previously blockaded ports. On Thursday an official at one of the ports, Zueitina, said a tanker had entered to load 570,000 barrels of crude to take to Zawiya refinery in western Libya.
Clashes, protests and political disputes slashed Libya's oil output to a fraction of former levels. The OPEC member was producing about 1.6 million bpd before the 2011 uprising that toppled long-time leader Muammar Gaddafi.
NOC Chairman Mustafa Sanalla has said he hopes the opening of the ports can be a turning point. But major pipelines in western Libya are still blockaded and Libya remains politically and militarily divided.
Of AGOCO's five major fields Bayda remains shut because of a technical problem at Ras Lanuf, and production at Nafoura is limited to 22,000 bpd, about half of its capacity, because maintenance work and parts are needed.
"Bayda field remains closed as it has a technical problem at Ras Lanuf, Nafura started output but has not yet reached the desired result, at 22,000 bpd, but can produce up to 40,000 bpd. This will all depend on the availability of spare parts, and maintenance work as well as the return of foreign companies," Shatwan continued.
A storage tank in Messla field that was damaged in 2011 has remained unrepaired because of the evacuation of foreign workers.
"One of the fields was damaged and destroyed by Gaddafi's forces during the February 17 revolution, and we haven't been able to fix it until now. It needs major foreign companies, but they are unable to do so because of the security situation," Shatwan added.
Of the ports seized by Hangar's forces, Zueitina had been closed since late last year, while Ras Lanuf and Es Sider ports had been shut since 2014. The first tankers docked at Ras Lanuf last week, but Es Sider, badly damaged in fighting, needs repairs before exports can resume.
Exports have continued at a reduced level at Brega, the fourth port now under Haftar's control.
"We ask on this occasion that all foreign companies return to work in Libya and carry out a security assessment, because honestly if they do not, then we must find alternative solutions," Shatwan said.
Hariga terminal in the far east of Libya, which is operated by AGOCO, has kept working relatively smoothly. Shatwan said 56 or 57 tankers had loaded there so far this year, compared to 90 tankers during the whole of 2015. - Copyright Holder: REUTERS
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