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  • Oil is the backbone of Libya's economy, but years of conflict, political infighting,

  • and now attacks by ISIS militants, have hurt the industry

  • Libya is seeking to boost its crude production after rival leaders agreed in July

  • to unify the state oil company under single management

  • With me to discuss the country's oil industry is Mustafa Sanalla, chairman of Libya's National Oil Corporation

  • Thank you for joining me

  • Thank you

  • Libya has lost huge sums from the lack of production. Are you able to give us a sense of how much Libya has lost?

  • As a chance of losing the XXXX oil is around 100 billion US dollars

  • NOC's working with international oil companies, like Total, Eni, Marathon, Hess, OMV, Repsol, all these companies

  • So the total loss is around 100 billion US dollars. But we have another loss that's not calculated

  • is how much time we are going to make rehabilation, and how much we're going to invest

  • to make rehabilitation to bring back the production to the normal levels

  • Libya's production now stands at around, is it around 200 thousand barrels a day?

  • Exactly, yes

  • And that's hugely down from what it traditionally was at, you know, several years ago, 1.4 million barrels a day

  • The Petroleum Facilities Guard which are effectively another militia group, you've said in the past they've been standing in the way

  • of getting Libyan production up. Are they still a problem for you?

  • Yeah, we still have a problem. This group of people supposed to protect the oil facilities

  • They said they are blockading the oil facilities, and preventing NOC from producing oil and exporting the oil

  • Some areas in Libya are safe, and there's no problem. There's no harm of protesting or blockading the XXX or the oil fields

  • so we need money here, especially in the eastern part of the country

  • For the middle part of the country, we need both. We need financing, and also we need security

  • Also in the west part of the country, recently the oil fields are blockaded

  • More recently, since the start of the year, ISIS has become a problem for Libya

  • What damage has ISIS caused to Libya's oil facilities?

  • Are they the main problem now, or still the Petroleum Facilities Guard?

  • No, for the time being, they are not a problem at all. They are in war now with the army xxx

  • but in the past, especially in the last year, beginning with this year, they were behind damaging the oil facility

  • especially in Mabruk oil field, XX, and Zahara (?), and Zened (?) oil fields

  • But I think the problem is not ISIS. The problem is the Petroleum Facility Guards

  • They're supposed to protect the oil facility. They are saying, they're claiming the Petroleum Facility Guard

  • They have 27 thousand soldiers. On the ground, there are only very few

  • Unification of the National Oil Company, you said at the time removed an obstacle for the unification of Libya's rival government

  • Where are we on that path and will we get there?

  • We unified both the institution, now only one after July 2, we signed the agreement

  • I think it is true that NOC is keeping the country united. If the NOC is fragmented, I think this would be very difficult for the country to revive again

  • to get out of this conflict. RIght now, NOC is united and NOC is keeping the country united

  • Thank you very much

Oil is the backbone of Libya's economy, but years of conflict, political infighting,

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