Rosneft signs deal to increase Libyan oil production

Rosneft signs deal to increase Libyan oil production

Russia’s largest oil producer Rosneft (LSE:ROSN) has agreed an oil exploration deal with the National Oil Corporation (NOC) of Libya.

Prior to the tumultuous period culminating in the overthrow of Colonel Gaddafi in 2011, Russia held significant investments in Libya, and is now looking to regain its presence among the North African nation’s extensive oil reserves.

The deal will allow Russia’s state-run oil producer to contribute towards Libya’s aim of expanding oil production to 2.1 million barrels per day (bpd) by 2022.

Production has recently returned to around 715,000 bpd, the highest levels since 2014, but still a long way from the 1.6 million bpd that was reached prior to Libya’s military uprising.

Mustafa Sanalla, chairman of NOC said: “We need the assistance and investment of major international oil companies to reach our production goals and stabilise our economy.

“This agreement with Russia’s largest oil company lays the foundations for us jointly to identify areas of cooperation. Working with NOC, Rosneft and Russia can play an important and constructive role in Libya.”