London- Libya’s oil production has approached one million barrels per day after it reached an interim agreement with Germany’s Wintershall to resume production amid a contract dispute.
Reuters reported on Tuesday that according to Libyan sources, Libya’s oil production stands at about 935,000 barrels per day (bpd) this week after touching as high as 950,000 bpd late last week.
The National Oil Corporation (NOC), which is targeting one million bpd by the end of July, received a boost this month when it reached an interim agreement with Germany’s Wintershall to resume production amid a contract dispute.
Libya, a member of the Organization of the Petroleum Exporting Countries, has been exempted from OPEC-led supply curbs as it tries to revive its battered oil industry. It had produced more than 1.6 million bpd before a 2011 uprising.
Omran al-Zwai, a spokesman for Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, said output had been as high as 950,000 bpd in recent days, rising from about 885,000 bpd at the start of last week.
Production has remained volatile in a nation that has suffered years of violence and political chaos. One Libyan oil source said NOC was repairing several leaks in pipelines that connected to the Es Sider and Zueitina export terminals.
The leaks were due to prolonged shutdowns caused by political rows, blockades by protesters and armed conflict.
Officials from Sirte Oil Co, another NOC subsidiary, said tests were being carried out at Laheeb oil field, which had been shut for maintenance, with a view to reopening the field. Laheeb previously produced 8,000-10,000 bpd.
On the other hand, oil prices have surged for the fourth time in row on Tuesday, and investors tend to cover urban centers, despite concerns that a global supply glut would persist in the global markets.
The global Brent price in the stock market increased to $46.90, up to 2.33 percent at 0400 GMT.
US West Texas Intermediate (WTI) crude futures were up to 2.21 percent, at $44.34 per barrel.
These profits mean that the market is slightly high since the beginning of this week, after it remained low during most days of the last month.
OPEC and its partners have been trying to reduce a global crude glut with production cuts. OPEC states and 11 other exporters agreed in May to extend cuts of 1.8 million barrels per day (bpd) until March.
Despite that the production decline has started in January, markets still have a lot of supplies due to the increased production in other places.
US shale oil output is up around 10 percent since last year to 9.4 million barrel per day, with the number of US oil rigs in operation at the highest in more than three years.