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FINANCIAL NEWS
Another 10,000bpd of crude cut down over Libya protests
06 May 2012
(MENAFN) Libya’s Arabian Gulf Oil Company (Agoco) was forced to cut oil production a further 10,000 barrels per day (bpd), as protesters over wealth distribution and unemployment blocked its headquarters for nearly two weeks, Reuters reported.
The firm’s spokesman Abdeljalil Mayuf said that the recent oil output cut follows a previous cut by 20,000 bpd, setting the output at 340,000 bpd, a setback for Libya’s oil industry which has recovered well since the end of last year’s political unrest.
Protesters have prevented employees from entering Agoco’s office since April 23, calling for more transparency over how Libya’s new rulers are spending its money and more jobs for youth.
Officials said a meeting was planned later in the day with the head of Libya’s ruling council over the matter, Mayuf added.
Libya is heading down to pre-war production of 1.6 million bpd, and its recovery contributed to a rise in OPEC output in April despite a drop in Iranian supply.
Agoco, which produced 425,000 bpd of crude oil before the war, acted as the de facto state oil company of the Libyan uprising as international sanctions imposed during the conflict prevented dealings with its parent company, the National Oil Corporation.
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