Libya Delays Oil Output Capacity Boost to 2017

Libya has delayed plans to raise its oil output capacity until 2017 because of budget constraints and the market situation, Oil Minister Shukri Ghanem said. "Our plan was to reach three million barrels per day by 2012, but because of the market conditions, as well as budget constraints," we delayed it to 2017, Ghanem told reporters in Cairo on the margins of an Arab oil meeting.

"By 2016-2017, we can reach the three million bpd target, but we need more budget allocations," he said. Libya's current production capacity is "almost 2 million bpd" and it is producing its OPEC quota of 1.5 million bpd, Ghanem added.

Ghanem also confirmed reports earlier this week from Tripoli that US petroleum company Hess has discovered new gas deposits in the Gulf of Sirte, where it operates in coordination with Libya's National Oil Corp (NOC).

"National Oil Company and Hess Corp. found quite a big field of gas in the Gulf of Sirte about three days ago," Ghanem said. Daily production is estimated to be around 27 Mscf/y and reserves are estimated "in excess of five to six trillion cubic feet (142-170 Bcm)," he added.

The New York-based Hess, an independent global energy company, owns 12.4 percent of the project while Libya's National Oil Corporation (NOC) controls the rest, Ghanem said.

NOC and Hess reported earlier this week that tests on well A1-54/01 offshore in the Mediterranean were successful and indicated good quality gas. Libya is Africa's third-largest oil producer after Nigeria and Angola at 1.7 million bpd and has estimated reserves of 42 billion barrels. It is also seeking to develop its natural gas production, with proven reserves estimated at 1.540 Bcm. Libyan natural gas exports have nearly doubled from 5.4 Bcm/y in 2005 to more than 10Bcm/y, according to OPEC.- AFP