In recent days, there have been reports indicating a further increase in Oil production in Libya, Commerzbank’s commodity analyst Carsten Fritsch notes.
Libya can expand production independently of OPEC+
“According to the country’s Oil minister, production is planned to be increased to 1.6 million barrels per day next year. The following year, a further increase in production to 1.8 million barrels per day is envisaged. This would exceed the production level that existed before the fall of the Gaddafi regime in 2011.”
“According to the Oil minister, production currently stands at 1.4 million barrels per day. After years of civil war and political instability, the investment climate in Libya appears to be improving. A bidding process is currently underway for the exploration and development of 22 areas, the first in more than 17 years. According to the head of the state Oil company NOC, 40 companies showed interest.”
“Libya is exempt from OPEC+ production targets, so it can expand production independently of the decisions made by the expanded cartel. This is not a major issue at present, as OPEC+ is also increasing production. However, if production cuts are made again in the future, Libya’s special status could be up for debate.”
