Oil recovery at stake, Libya state oil firm declares

October 12, 2017

Libya said it’s struggling to restore oil production and fellow OPEC members are sparing the nation from having to participate in their deal to cut output, Bloomberg reported.

The country has revived output to almost 1 million barrels a day, but it’s “very difficult’’ to say when that could increase to 1.25 million a day, said Mustafa Sanallah, chairman of the National Oil Corp. That’s a production target Libya gave to fellow producers at a meeting in July, Bloomberg added.

“We’re still suffering from the lack of budget,’’ Sanallah told reporters in London after two days of meetings with diplomats and oil companies. Libya has explained its challenges to OPEC, which “understands the situation very well,’’ he said.

While Libya has resolved some internal disputes and restored output from a low of 550,000 barrels a day in April, the country still faces major challenges. The state-run oil company is only receiving about 25 percent of its investment budget and production could decline without the needed money, Sanallah said, according to Bloomberg.