Libya Mulls Bonuses for Oil Firms in Bid to Boost Output

TRIPOLI (Capital Markets in Africa) – Libya may introduce contracts with private oil companies that would give bonuses to those that meet targets and penalize those that don’t, as the OPEC member tries to raise output to 1.4 million barrels a day by mid-2022.

Reaching that figure is possible if a national budget is finally passed that unlocks funding for the sector, according to Oil Minister Mohamed Oun. Otherwise, the North African nation may undertake the oil service agreements with private Libyan or foreign companies to develop fields and boost production, he said.

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

Total and Eni Ready Billion-Dollar Energy Projects in Libya

Libya is slated to hold long-awaited elections on Dec. 24, in a step meant to cap a decade of conflict sparked by the uprising that ousted dictator Moammar Al Qaddafi. There are now serious doubts the vote will go ahead as planned, as disputes over the eligibility of candidates threaten to sow fresh turmoil.

 

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