• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours U.S. Withdraws From U.N. Human Rights Council
  • 13 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 13 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 9 hours "The Gasoline Car Is a Car With a Future"
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 5 hours Saudi Arabia turns to solar
  • 21 mins Gazprom Exports to EU Hit Record
  • 17 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 3 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 6 hours What If Canada Had Wind and Not Oilsands?
  • 9 hours EVs Could Help Coal Demand
  • 17 hours WE Solutions plans to print cars
  • 22 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 day Lloyd's of London excludes coal
Uncertainty Looms Large Over Latin American Oil

Uncertainty Looms Large Over Latin American Oil

While Venezuela is grabbing a…

Oil Inches Higher On Strong Crude Draw

Oil Inches Higher On Strong Crude Draw

Oil prices rebounded on Wednesday…

Libya’s NOC, Wintershall Agree To Resume 160,000 Bpd Output

Oil

Libya’s National Oil Corporation (NOC) said on Tuesday that it had reached an interim deal with Germany’s Wintershall to immediately resume production in concession areas and related fields, which would unblock 160,000 bpd worth of production that has been shut-in for most of the past two years over a dispute between the companies.

“This shutdown was enormously costly to Libya. I hope we can now get on with the business of meeting our oil production targets without interruptions,” NOC chairman Mustafa Sanalla said in the statement.

Last month, Sanalla said that a commercial dispute between Libya and Wintershall had shut in more than 160,000 bpd of output, costing the country nearly US$250 million monthly.

We would be producing almost 1 million bpd if it were not for Wintershall’s refusal to implement terms it agreed to in 2010,” NOC’s chairman noted in a press release back then.

According to a Sanalla’s statement sent to The Wall Street Journal, the dispute between Wintershall and NOC is over liabilities that Wintershall owes to Libya dating back to 2008. According to a Wintershall spokesman, who spoke to The Journal, “there is no claim over money allegedly owed by Wintershall.”

Wintershall operates in eight onshore oil fields in the eastern Sirte Basin, and production has been stopped several times since 2013. When production had resumed, it was in limited quantities, according to the company’s website. In its 2016 production report, Wintershall said that in Libya, it was only able to produce again in onshore concession NC 96 from 16 September 2016, owing to the difficult political conditions, and it resumed production at a low level of 35,000 BOE per day.

Now under the interim agreement, Wintershall will get an amount of production “sufficient to cover its costs”, with all remaining output allocated to NOC, the Libyan company said on Tuesday. During the interim production arrangement deal, the two parties will try to work out their dispute over the legal framework of the operations, NOC said.

Related: Canada Pushes For Zero Emission Vehicle Strategy

In this week’s statement, NOC’s Sanalla said:

Total oil production in Libya as of today is 830,000 b/d, and we are targeting one million barrels by end of July, 2017 as a result of the resumption of production from the Wintershall and linked Abouatiffel fields, as well as from 103 A and Nafoora.”

Libya reaching 1 million bpd of production by the end of next month would further complicate OPEC’s efforts to reduce collective output, given the fact that Libya is exempt from the production cut deal.

By Tsvetana Paraskova for Oilprice.com

More Top Reads For Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News