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Libyan Oil Output Drops In May Amid Persistent Outages

Summary

The Elephant Oil field remains shut down, while high temperatures forced the Libyan state firm AGOCO company to lower output from main fields in the Sirte Basin.

The lower production is in-line with a drop in exports. Kayrros Libya Exports Tracker measured a large, multi-million barrel drop of crude exported in May.

Kayrros estimates that the current maximum production capacity of the country stands at a little over one million barrels per day.

The NOC expressed the ambition to increase Libya’s oil output to over two million barrels per day by 2023. At present, it is unlikely that it can do so without the help of the IOCs.

The persistent field shutdowns coupled with budget constraints are contributing to a slowdown in oil production.

Oil and gas infrastructure remains affected by repeated outages

Exports from the Es Sider field also dropped, reflecting the effects of the damage to the pipeline feeding the terminal from the Wahah oil field late-April.

No exports from the Melitah oil terminal were measured in May. Mellitah Oil and Gas announced the closure for planned maintenance of its gas processing complex at the terminal last month and only recently announced a return to normal operations after the prolonged planned shutdown.

While BP and ENI plan to resume suspended exploration activities, reigniting Libya's intention to raise production, the NOC's dispute with Total persists over the major French purchase of Marathon's stake in the Wahah concession earlier this year.