Oct 25 2011 |
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3rd UPDATE:Production Restarts At Giant Repsol Oil Field In Libya
Tuesday, Oct 25, 2011
(Adds details.)
By Benoit Faucon
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--A giant Libyan oil field partly owned by Repsol YPF SA (REP.MC) has restarted production after months of shutdown, the latest foreign operation to return as the death of Moammar Gadhafi eases some security concerns.
Speaking to Dow Jones Newswires, Nuri Berruien, chairman of Libya's National Oil Co., said the Sharara field in Libya's Southern desert was producing 60,000 barrels a day and may soon reach 100,000 barrels a day.
A spokesman for Repsol confirmed that the company is restarting and ramping up production but declined to comment further.
Sharara is the largest Libyan oil field among those with a foreign partner and, according to NOC's website, has a normal production of 340,000 barrels a day. It is operated by a joint venture whose shareholders also include OMV AG (OMV.VI) and Total SA (TOT). OMV declined to comment and a Total spokesman couldn't be reached.
Most of Libya's oil production shut down when the civil war erupted in February, leading to Gadhafi's toppling in August and his death last week.
Repsol 's foreign joint venture is the latest to restart, hard on the heels of operations involving Wintershall Holding GmbH, Total and Eni SpA (E).
The fall of Gadhafi's last stronghold and his subsequent death has sparked hopes that the recovery of the oil industry can increase pace. Fears of attacks by his loyalists are now discounted. And the full liberation of the country paves the way for the appointment of a new cabinet expected to include a fully fledged oil minister.
Deputy oil minister Omar Shakmak told Dow Jones Newswires Monday that Abdulrahman Benyezza, a longstanding Eni executive, is still a top contender for the oil ministry's position.
Libya's recovery has surprised most observers, including the authoritative International Energy Agency, which had said the country's oil production would be no more than 400,000 barrels a day by the end of the year.
Still, the agency is keeping its assumption of 1.1 million barrels a day of Libyan oil production by the fourth quarter of next year.
That's because the scars left on the oil industry by Libya's civil war will take time to heal. They include damage to some key oil terminals, strife caused by staff seeking to demote Gadhafi-era managers and foreign workers fearing the mass circulation of weapons.
In addition, some parts of the sector may still face safety issues.
A fuel tank exploded late Monday in Gadhafi's hometown Sirte killing dozens, according to Libyan oil officials confirming information from Agence France Presse.
They said the depot was being used to fill cars with gasoline and exploded accidentally, possibly due to an electric spark.
-By Benoit Faucon, Dow Jones Newswires; +44-20-7842-9266; benoit.faucon@dowjones.com
(Ilan Brat in Madrid and Nicole Lundeen in Vienna contributed to this report.)
(END) Dow Jones Newswires
25-10-11 1423GMT
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