Oil minister: Bidding round for $3-4 billion to boost Libya's oil production is expected shortly

Khalifa Abdelsadek said on Saturday that Libya will need between $3 billion and $400 million to achieve a production rate of 1,650,000 barrels of oil per day. He added that the cabinet is expected to approve a new round of license bids before the end January.

Abdulsadek stated that the Libyan economy is heavily dependent on oil. It accounts for more than 95% its economic output.

Abdulsadek stated that the only way to increase production is by accelerating reconstruction.

Abdulsadek stated that the goal was not only to reach 1.6 millions bpd, but also to increase it further to 2 million.

National Oil Corporation (NOC) reported that the nation's oil production reached 1,413,372 barrels per day on Friday.

Before the NATO-backed uprising in 2011 that brought down Muammar Gadafi, Libya was producing 1.6 millions bpd.

Abdulsadek stated, at the Libya Energy and Economy Summit in Tripoli that the bid round will include three basins and between 15 and 21 blocks.

The bids will be placed in all sedimentary basins of Libya: Sirte Basin Murzuq Basin Ghadames Basin. Abdulsadek stated that the marine areas are pretty much everywhere.

Farhat Bengdara, former head of the NOC, said that 17 years had passed since Libya's last bid round for exploration concessions. Bengdara said that 70% of Libya’s total land area, and more than 65% of the territorial waters of Libya have not yet been explored. Bengdara announced his resignation on Thursday. He was replaced by Masoud Suleiman, a member of the NOC Board of Directors.

Abdulsadek said that the date for the announcement of the license of the bidding round would be announced after the approval of the meeting of the government of unity, "as the oil ministry and NOC will have completed their work."

He stated that the government will work with partners to provide $3-4 billion to "not only increase production, but to maintain the current production rate."

The minister stated that the bidding round is of strategic importance. He added that "every time there is production there is a cost and this must be compensated by exploration." (Reporting and editing by Ahmed Elumami)

(source: Reuters)