Oil production drops to 729,000 barrels per day (b / d) due to forced shutdowns as country remains exempt from OPEC oil production quotas
As of January 6, 2022, oil production fell to around 729,000 b / d, compared to more than 1.3 M b / d last year. On December 20, 2021, the National Oil Corporation (NOC) announced the state of force majeure in 4 oil fields – Sharara, El Feel, Wafa and Hamada, representing a production of around 400,000 bpd – due to their shutdown by members of the Petrol Facilities Guard, a paramilitary force designed to protect the country’s energy facilities.
At the start of 2022, in a context of uncertain elections, the lack of maintenance of oil pipelines to absorb leaks and the deterioration of surface facilities in the Waha field is also at the origin of part of the the decline in production. Similar renovations had taken place a year earlier at several sites but illegal closures and a lack of financial resources quickly deteriorated the situation, according to NOC chairman Mustafa Sanalla.
Libya remains exempt from OPEC oil production quotas
Libyan Oil and Gas Minister Mohamed Aoun attended the 24th Ministerial Council meeting of the Organization of the Petroleum Exporting Countries (OPEC) on January 4, 2022. The organization announced its willingness to increase production of 400,000 barrels / d in February, in compensation for the reductions decided last year. Libya has remained exempt from OPEC production quota decisions.