News / Africa

    Minister: Libyan Oil Back in Days - Politics Permitting

    Libya's Oil Minister Abdelbari al-Arusi speaks in Tripoli, July 31, 2013.
    Libya's Oil Minister Abdelbari al-Arusi speaks in Tripoli, July 31, 2013.
    Reuters
    Libya's oil exports could return to full capacity in days once strikes in the restive east end, its oil minister said on Wednesday
     
    But demands for more local power from some protesters are tied to the political transition and may take time to resolve, Abdelbari Arusi added.
     
    To keep international oil companies on board through the turmoil, Arusi said Libya was already working on improving terms for existing investors and easing terms in new license rounds.
     
    “We're expecting to solve this issue any time and by solving this issue we can have oil production back to 1.6 million barrels per day,” he told a conference. “Our problem in Libya now is a political problem, not a technical problem.”
     
    A mix of striking workers, militias and political activists have blocked Libya's oilfields and ports for more than two months resulting, according to Arusi, in over $5 billion of lost revenues for the OPEC member whose budget relies on oil exports.
     
    Libya took its first steps towards resuming output from the west in mid-September after reaching a deal with locals.
     
    Arusi said a parliamentary committee was negotiating with groups in the east and only a small number of protesters were still holding out. Because it is the ports not the fields that are blocked in the east, he added, production could return to capacity in three to four days once disputes are settled.
     
    Talks to reopen the major oil export terminals of Es Sider and Ras Lanuf in the east have taken time because while some protesters are simply demanding better benefits, more local investment and more jobs, others have linked their demands to political wrangling over the future shape of Libya.
     
    Protesters in the east want a federal Libya with greater powers and the headquarters of the National Oil Company (NOC) transferred to Benghazi, the capital of the east and birthplace of the 2011 revolution that removed Muammar Gaddafi from power.
     
    Parliament is due to write a new constitution for the new Libya but different groups are pushing their own agendas. The government lacks the military means to crush armed protesters and in any case, Arusi said it was reluctant to use force as it sought to build a new democracy.
     
    “Some in Ajdabiya, Brega and Ras Lanuf are asking to form a federal system and if you like that then you have to put it in the constitution,” Arusi said. “We are working on the constitution.”
     
    Output inching up

    Growing instability since 2011 coupled with disruptions and, in some cases, disappointing finds have prompted some majors including ExxonMobil and Royal Dutch Shell to freeze activities and smaller firms like Marathon are selling.
     
    Arusi said Libya was reviewing the terms for existing foreign investors in its energy sector as well as drawing up more attractive terms for its next licensing round, which he said should be launched in the first half of next year.
     
    A new petroleum law would also be ready next year, he added.
     
    “We're forming a committee to review the previous agreements and come up with new agreements to ease our terms and conditions and come up with something good for both parties,” Arusi said.
     
    Libya's crude oil output has risen to near 700,000 bpd since the western fields reopened last month, Arusi said.
     
    The worst disruption since the 2011 war had cut output to below 200,000 bpd last month from 1.4 million bpd before.
     
    Arusi said there were “positive signs” that the port of Hariga in the far east would re-open soon and oil officials have said there had been progress in talks with local councils there.
     
    In a sign that disruptions could pop up in different parts of the country, however, protesters in the west have shut a gas pumping station supplying a facility jointly run with Italy's ENI and reducing exports to Italy.
     
    Import flows into Italy on Tuesday were around 8.8 million cubic meters compared to shipper requests for 12.7 mcm, according to data from gas grid operator Snam.
     
    Arusi confirmed that gas flows from the Wafa field, the largest gas field in western Libya that feeds the Mellitah complex south of Tripoli, had been shut for two days and exports to Italy had been halved.
     
    “We have substituted gas from the offshore field of Bahr al-Salam and reduced our gas to Italy to compensate what we lost from the Wafa field,” he said, adding that the priority was to ensure enough domestic gas supplies before exporting.
     
    He expected gas supplies to be restored “today or tomorrow.”

    You May Like

    Video Democrats Clinton, Kaine Offer 'Very Different Vision' Than Trump

    In a jab at Trump, Clinton says her team wants to 'build bridges, not walls'; Obama Hails Kaine's record; Trump calls Kaine a 'job-killer'

    Turkey Wants Pakistan to Close Down institutions, Businesses Linked to Gulen

    Thousands of Pakistani students are enrolled in Gulen's commercial network of around two dozen institutions operating in Pakistan for over two decades

    AU Passport A Work in Progress

    Who will get the passport and what the benefits are still need to be worked out

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movementi
    X
    July 22, 2016 11:49 AM
    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Poor Residents in Cleveland Not Feeling High Hopes of Republican Convention

    With the Republican Party's National Convention underway in Cleveland, Ohio, delegates and visitors are gathered in the host city's downtown - waiting to hear from the party's presidential candidate, Donald Trump. But a few kilometers from the convention's venue, Cleveland's poorest residents are not convinced Trump or his policies will make a difference in their lives. VOA's Ramon Taylor spoke with some of these residents as well as some of the Republican delegates and filed this report.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video With Yosemite as Backdrop, Obama Praises National Parks

    Last month, President Barack Obama and his family visited some of the most beautiful national parks in the U.S. Using the majestic backdrop of a towering waterfall in California's Yosemite National Park, Obama praised the national park system which celebrates its 100th anniversary this year. He talked about the importance of America’s “national treasures” and the need to protect them from climate change and other threats. VOA’s Julie Taboh reports.
    Video

    Video Counter-Islamic State Coalition Plots Next Steps

    As momentum shifts against Islamic State in Iraq, discussions are taking place about the next steps for driving the terrorist group from its final strongholds. Secretary of State John Kerry is hosting a counter-IS meeting at the State Department, a day after defense ministers from more than 30 countries reviewed and agreed upon a course of action. VOA Pentagon correspondent Carla Babb reports.
    Video

    Video Russia's Participation at Brazil Olympic Games Still In Question

    The International Olympic Committee has delayed a decision on whether to ban all Russian teams from competing in next month's Olympic Games in Brazil over allegations of an elaborate doping scheme. The World Anti-Doping Agency recently released an independent report alleging widespread doping by Russian athletes at the 2014 Winter Olympics in Sochi. So far, only Russian track and field athletes have been barred from the Summer Games in Brazil. VOA's Zlatica Hoke has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.
    Video

    Video Millennials Could Determine Who Wins Race to White House

    With only four months to go until Americans elect a new president, one group of voters is getting a lot more attention these days: those ages 18 to 35, a generation known as millennials. It’s a demographic that some analysts say could have the power to decide the 2016 election. But a lot depends on whether they actually turn out to vote. VOA’s Alexa Lamanna reports.

    Special Report

    Adrift The Invisible African Diaspora