AGOCO announces increase in oil production

By Libyan Herald reporter.

Tunis, 27 September 2016:

The Benghazi-based Arabian Gulf Oil Company (AGOCO) has announced that it has increased production by almost a quarter over the past week. Production is now up 50,000 b/d to 261,000 b/d, company spokesman Omran al-Zwai has been quoted by Reuters as saying.

The announcement follows the Libyan National Army’s takeover and reopening of the Ras Lanuf, Sidra and Zueitina oil terminals which resulted in National Oil Corporation (NOC) chairman Mustafa Sanalla repeating his prediction that if the government ensured that its budget requirements were paid, the NOC could have oil production back up to 600,000 b/d within a month and to 900,000 b/d by the end of the year.

Since the LNA takeover of the terminals and the NOC’s declaration that force majeure at them had been ended, a number of tankers have been lifting oil. However, most of AGOCO’s production goes to the Hariga terminal at Tobruk which has been operating more or less throughout the crisis. AGOCO’s problems have been more centred on the lack of cash to pay staff, causing them to take industrial action.