Libyan oil production rebounding faster than expected

Libya's oil production is recovering faster than had been anticipated and is now at close to 700,000 barrels a day, a top official said Thursday. Just a week ago, the country's interim oil minister predicted that threshold would be reached by the end of the year.

Nuri Berouin, the head of Libya's National Oil Corporation said he expects the country will add another 200,000 bpd by the end of the year, with production rising to pre-war levels of 1.6 million bpd by the end of 2012. A little less than a third (140,000 bpd) now goes to local refineries, with the rest designated for export.  

Repairs to the oil sector's infrastructure will cost hundreds of millions of dollars, he said. It is estimated that as much as 10 per cent of that oil infrastructure was severely damaged during the eight-month conflict that led to the ouster of Colonel Ghaddafi.

Production only resumed in September after months of shutdown. The giant Elephant field, which is partly owned by Eni SpA (E), has restarted production, while Sharara, where Repsol YPF SA (REP) has a stake, has continued boosting output.