Speaking at the Atlantic Council’s conference earlier this week, the Head of the National Oil Corporation of Libya (NOC), Mustafa Sanalla, said the country is talking to its partners to fix its ailing infrastructure, after years of neglect.
The National Oil Company had to shut down the leaking pipe, which cut its crude production by around 200,000 barrels a day. French oil and gas group, Total SE, Italian oil giant, Eni SpA, and Spanish energy and petrochemical company, Repsol SA, are some of the international oil companies with stakes in Libya.
The pipeline closed is the one that carries crude to the largest port in the country, the eastern oil port of Es Sider. Since the shutdown, Libyan output has fallen to the lowest in two months, to around 1 million barrels daily.
He said, “This gives you an indication that the infrastructure in Libya is really in bad shape. We are now discussing with our partners how to finance and how they can help us. If the government can’t give the NOC the right budget, maybe we can take the budget from our partners.”
Sanalla disclosed the pipeline may be back online in ten (10) days. He is optimistic that Libya can sustain the recovery in production, despite the Es Sider pipeline setback, though he noted it is dependent on the NOC getting more money and if there are no more blockades on the ports.
The Company is trying to fix oil fields, storage tanks, pumping stations, pipelines and ports. Some were damaged due to neglect and others were caused by other external factors.