Libya considers bonuses for oil companies to boost crude production

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Through Hatem Mohareb to 12/19/2021

(Bloomberg) – Libya could introduce contracts with private oil companies that would give bonuses to those who meet targets and penalize those who do not, as the OPEC member tries to increase production to 1.4 million barrels per day by mid-2022.

Reaching this figure is possible if a national budget is finally adopted which releases funding for the sector, according to the Minister of Petroleum Mohamed Oun. Otherwise, the North African nation could strike oil service agreements with private Libyan or foreign companies to develop fields and increase production, he said.

Production is currently 1.25 million to 1.3 million barrels per day, Oun said by phone. “If the state is stabilized by elections or the formation of a government, we hope to reach 2.1 million barrels within two or three years,” he added.

Libya is expected to hold long-awaited elections on December 24, with the aim of crowning a decade of conflict sparked by the uprising that toppled dictator Muammar Al Gaddafi. There are now serious doubts that the vote will go as planned, as disputes over the eligibility of the candidates threaten to sow further unrest.

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