Libya is looking for U.S. oil companies to return to the oil-rich nation, according to Bloomberg.
Libya’s oil minister Mohamed Aoun has said that he hopes U.S. companies will return to Libya, although Libya’s oil infrastructure is in dire need of repairs and upgrades, the minister added.
Libya is home to Africa’s greatest oil reserves.
In March, Libya announced its intention to increase oil production to 1.45 million bpd by the end of this year, 1.6 million bpd within two years, and 2.1 million bpd within four years.
But as of August, production has remained mostly flat this year, sitting at 1.163 million bpd after numerous setbacks along its path toward a production ramp up.
Those setbacks include protests and other security-related issues—including faction infighting–and corroded pipelines that caused leaks. But budget constraints also have cut into production, derailing Libya’s ambitious plans to increase production.
The budget gaps—which could be filled in part by U.S. oil companies coming on the scene—could go a long way to spurring on their oil production plans.
For Libya, oil revenues are its almost exclusive foreign revenue stream. And in order to make ends meet, Libya would need to increase its oil production by 40% next year, with its central bank calling this increase “imperative”.
It’s no wonder, then, that it is looking to U.S. oil companies as a way to increase its own production and pad its bottom line.
Libya’s goal now is to convince foreign oil companies that it is stable enough to make Libya’s vast oil riches worth their while, adding that there is still much territory to be explored.