Libya gas companies 1.5 years away from prior production levels

One and a half years. Petroleum companies need this much time to regain previous levels of production from the Libyan oil oasis. Midway through last February, Gadhafi's government produced 1.6 million barrels of crude per day. This is 2% of the world's production and the third highest volume in Africa after Nigeria and Angola. To return to those levels and regain its position in the global ranking will take 18 months.

Libya is home to the world?s ninth largest oil reserves: approximately 1.5 billion cubic meters, or 46 billion barrels. While dealing with seven months of political hell and abandoned export terminals, refineries and pipelines, production figures have been reduced to less than 100,000 barrels per day. Those rebuilding the federal government will take on the responsibility of healing the economy. It is one of the most indebted in the world. A third of its GDP comes from crude exports and accounts for 75% of the budget. 80% of Libyan oil deposits lie in the Cuenca basin. The rebels have made it clear that they would like to re-establish prior production levels in three weeks. Hard work, according to the experts.

The director general of the Association of Petroleum Product Operators believes that we must remain cautious. "Production levels could return in as little as six months, or at the latest a year and a half." Álvaro Mazarrasa explained to elEconomista that there are various fundamental issues to keep in mind. "The first is to define the new Libya. Because the country lacks institutions, given that Gadhafi was a unilateral regime. So Libya needs to organize a government starting from scratch. And the gas companies will be very much on guard during this process."