One of NOC’s oil installation in Libya.
Tripoli— Libyan National Oil Corporation (NOC) has announced that it reached an agreement with Wintershall of Germany on immediately resuming oil production in the concession areas of NC 96 and NC 97 in southeast Libya.
It is expected that the agreement will add at least 160,000 bpd to the country’s current oil production.
The new arrangement brings an end to the dispute between Wintershall and NOC and ends a damaging shutdown of operations in mentioned areas.
NOC chairman Mustafa Sanalla said on Tuesday “NOC has reserved all its legal rights to ensure that Libya’s interests are upheld”.
“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,” Sanalla added.
NOC has been able to increase oil production immediately after the Libyan National Army succeeded to extend its control over five oil terminals and defeat a number of militias affiliated with terrorists and ISIS.
“Total oil production in Libya as of today is 830,000 b/d, and we are targeting one million barrels by end of July, 2017as a result of the resumption of production from the Wintershall and linked Abouatiffel fields, as well as from 103 A and Nafoora,” said Sanalla.
According to NOC’s website, the agreement allocates to Wintershall an amount of production sufficient to cover its costs, with all remaining production being allocated toNOC. It also provides that during this interim arrangement, the parties will attempt to resolve their dispute regarding the legal framework governing the petroleum operations.
Libya’s largest oil field, El Sharara, which produces 270,000 bpd resumed production on Wednesday 7 June after workers ended a protest over the lack of medical treatment for a co-worker who had died in an accident in a swimming pool at the field.