(Ecofin Agency) - Libya’s government set to boost oil production in five-fold and also plans to punish companies working with a rival cabinet endeavoring to control the divided North African nation’s crude deposits.
Oil companies operating in Libya or seeking to operate, must register with the National Oil Corp. (NOC ) controlled by the elected government based in the country’s eastern region, Deputy Prime Minister Abdussalam Elbadri declared at a conference in Valletta, Malta.
According to NOC Chairman Nagi Elmagrabi the corporation will not renew contracts of any companies that do not support the elected government. The country plans to boost crude output to 2 million b/d come 2020, he said. “We will send letters to all the international companies that operate in Libya asking them to deal with the internationally recognized and legal government,” Elmagrabi told Bloomberg. “We will take measures based on their respective replies to the letter. If they continue to decline to cooperate with the legal government, we will stop their loadings once their contracts expire.”
However ethnic and political disagreements have almost halted onshore crude output in the West, where a government backed by moderate Islamist militias has held power since last year. The nation’s elected government is based in the East, where some oil continues to be exported.
Libya pumped about 1.6 million bpd of crude before the 2011 rebellion. It’s now the smallest producer in OPEC, producing 355,000 bpd in August.
Compared to Libya’s political leadership, the NOC has opposing eastern and western administrations that are trying to control energy facilities and fields. The NOC’s eastern-based management is looking to lift force majeure; which was declared at the two ports in December after they came under attacks at oil ports in that region, Elmagrabi said, not giving dates for such a step.