Posted by: ZAWYA

BENGHAZI, Libya – Libya’s Arabian Gulf Oil Company (AGOCO) is hoping to resolve power problems by the end of March that are keeping production well below potential, its chairman said on Monday.

In recent weeks, AGOCO’s production has been fluctuating between around 150,000 and 230,000 barrels per day (bpd), according to an oil source who asked not to be named. On Monday, production stood at 140,000 bpd, well below the more than 320,000 bpd AGOCO was producing in October.

AGOCO, a subsidiary of the National Oil Corporation (NOC), has continued to produce at a high rate from fields in eastern Libya while output from elsewhere in Libya has been hit by years of political turmoil and armed conflict.

But it has suffered from power supply problems and — like other operators in the North African OPEC member — funding shortfalls for its operating budget and a lack of investment.

Libya’s national output has been hovering around 1 million bpd since June, about four times mid-2016 levels. Along with Nigeria, Libya was exempted from OPEC-led output cuts that were extended in November.

Written by: Ayman al-Warfalli, Reuters News
Photo: Pipes are pictured at Libya’s El Sharara oilfield December 3, 2014. (REUTERS/Ismail Zitouny)