Libya NOC chief says oil output 1.2 million bpd

ABU DHABI - The head of Libya's National Oil Corporation (NOC) said on Tuesday that oil output had risen to 1.2 million barrels per day (bpd) from 600,000 bpd three months ago and that NOC does not expect any disruption in oil production.

Oil production has been repeatedly hit in Libya - an OPEC member - by groups blockading facilities, sometimes to demand material benefits but also as a tactic to achieve wider political ends.

During the last major bout of conflict, groups affiliated with eastern commander Khalifa Haftar cut nearly all of Libya's oil output for eight months.

The last major blockade, also by groups aligned with Haftar, cut Libyan oil output by about half and ended when the government in Tripoli appointed Bengdara as the head of NOC in July.

Speaking at an industry conference in Abu Dhabi, NOC chief Farhat Bengdara said that "there is an understanding that oil should not be used as leverage for political gains."

He said that Libya, which is seeking investment to develop new supplies of oil and natural gas, is close to finalising a deal with Italy's Eni worth up to $8 billion.

"We are in the process to sign an investment with Eni to produce gas from the offshore," Bengdara told reporters. "This is something around $6 to $8 billion and...also a programme of drilling offshore and onshore will start soon by Eni and BP."

He added that the company was in talks with "Total as well to invest more in Libya...to increase production", without giving further details.

Bengdara said that Libya's future in gas was even bigger than for oil, and called for a balanced approach to the energy transition.

"You can't just fancy renewables and cut investment for hydrocarbons. This will make shortages... energy prices volatile and it will affect the world economy," he said.