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Libyan oil production slowly coming back online (RDS, REPYY)

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The good news for global oil consumers is that production from Libya's oil fields is slowly beginning to come back online. Libya was the 12th largest oil exporter and a major supplier of highly desirable light sweet crude oil in particular before its revolution, producing about 1.6 million barrels of oil a day.

Royal Dutch Shell PLC ADR ( RDS.A , quote ) said on Tuesday it is mulling restarting drilling operations in Libya. The company has been in contact with the new government and feels it is safe to resume operations.

And Royal Dutch is not alone, with many oil firms already coming back to Libya .

One of the top foreign producers of oil in Libya, Spanish-Argentine Repsol YPF SA ( REPYY , quote ), said today oil production at its Libya joint venture -- the Akarus Oil Operations -- had reached 200,000 barrels a day. According to the company's CEO, Antonio Brufau, this is ahead of schedule and "above our target."

This figure is still about 60% of the previous full production from the joint venture. But Brufau added, "it won't be easy to reach full production."

When asked about when he expected Libya's oil exports to reach pre-war levels, he said "it will take some time."

If he is correct, this should keep oil prices in Europe at an elevated level for some time to come.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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