São Paulo – Libya will not sign new oil exploration and production contracts before a new government is formed. The information was supplied by the African news agency Panapress , which cites the Libyan minister of Finance and Petroleum, Ali Tarhouni, as its source.
The prime minister spoke to the press this Thursday (10th) and claimed that new contracts will only be signed after the elections, which are scheduled for eight months from now. Still, Tarhouni said oil production in Libya this year will exceed 700,000 barrels per day.
The Arab country has 44 million barrels in oil reserves. Prior to the popular uprising that began in February and led to the ousting of leader Muammar Gaddafi, daily oil production in the Arab country stood at 1.7 million barrels.
Now that production is back to normal, Libya is the third leading oil producing country in Africa, after Nigeria and Angola. The country also holds significant reserves of gas, estimated at over 15 billion cubic metres.
This week, the International Energy Agency (IEA) announced that Libyan oil production is being re-established at a faster rate than expected. However, the IEA believes pre-war levels should not be matched before 2013. The organization expects Libya to produce 1.17 million barrels per day up until the end of 2012.
*Translated by Gabriel Pomerancblum
