Libya to Resume Oil Production, Can Reach 800,000 Barrels by End 2011 image

According to Libya’s acting Prime Minister Ali Tarhouni, the production of oil will return to 800,000 barrels of crude a day by the end of this year, and to a pre-war level of 1.6 million barrels a day by the end of 2012.

He confirmed that the resumption of Eni’s giant Elephant field is “imminent.” It is even likely “it will start today,” he said. Reports had previously suggested it could take months to resume.

“Right now we are producing 600,000 barrels per day, and out of that 140,000 go to the refinery,” NOC Chairman Nuri Berruien said in Qatar’s capital, where the Gas Exporting Countries Forum is taking place between Nov. 13-15.

He said that the damage to oil facilities from the revolution that ousted col. Moamer Kadhafi is expected to cost “hundreds of millions of dollars.”

Last week, the Paris-based International Energy Agency said that production in Libya was resuming faster than had been expected after a key pipeline was repaired.

However, it is not expected to give any major new concessions until an elected administration takes over from the incoming transitional government, in about eight months time.

Global oil prices have surged almost 30% from an eight-month low of $75 a barrel in October