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

Changing Under Pressure, IS ‘Potent’ as Ever

US intel officials describe Ramadi's fall as concerning, but say it isn't emblematic of larger effort to degrade IS capabilities More

Nigeria Fuel Shortage Shows Fragility of Africa’s Oil Giant

Although it is the largest oil producer in Africa, country has nearly ran out of fuel it needs to power its generators, cars and airplanes over the past week More

Arrested Football Officials Come Mainly From the Americas

US Justice Department alleges defendants participated in 24-year scheme to enrich themselves through corruption of international soccer More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
3D Printer Makes Replica of Iconic Sports Cari
|| 0:00:00
...    
🔇
X
George Putic
May 27, 2015 9:31 PM
Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video US Voters Seek Answers From Presidential Candidates on IS Gains

The growth of the Islamic State militant group in Iraq and Syria comes as the 2016 U.S. presidential campaign kicks off in the Midwest state of Iowa.   As VOA’s Kane Farabaugh reports, voters want to know how the candidates would handle recent militant gains in the Middle East.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video US-led Coalition Gives Some Weapons to Iraqi Troops

In a video released Tuesday from the Iraqi Ministry of Defense, Iraqi forces and U.S.-led coalition troops survey a cache of weapons supplied to help Iraq liberate Mosul from Islamic State group. According to a statement provided with the video, the ministry and the U.S.-led coaltion troops have started ''supplying the 16th army division with medium and light weapons in preparation to liberate Mosul and nearby areas from Da'esh (Arabic acronym for Islamic State group).''
Video

Video Amnesty International: 'Overwhelming Evidence' of War Crimes in Ukraine

Human rights group Amnesty International says there is overwhelming evidence of ongoing war crimes in Ukraine, despite a tentative cease-fire with pro-Russian rebels. Researchers interviewed more than 30 prisoners from both sides of the conflict and all but one said they were tortured. Henry Ridgwell reports for VOA from London.
Video

Video Washington Parade Honors Those Killed Serving in US Military

Every year, on the last Monday in the month of May, millions of Americans honor the memories of those killed while serving in the armed forces. Memorial Day is a tradition that dates back to the 19th Century. While many people celebrate the federal holiday with a barbecue and a day off from work, for those who’ve served in the military, it’s a special day to remember those who made the ultimate sacrifice. Arash Arabasadi reports for VOA from Washington.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.

VOA Blogs