×

UPDATE 2-Libya's NOC moves to shield oil output from budget, security risks

(Adds details)

LONDON, Oct 11 (Reuters) - Libya's National Oil Corporation (NOC) is mobilising key stakeholders to protect its output, which it said has been curtailed by it only receiving 25 percent of its 2017 budget.

The North African country's output is around one million barrels per day (bpd), NOC Chairman Mustafa Sanalla told reporters on Wednesday, adding that a goal of 1.25 million bpd by the end of the year was "very difficult" to achieve.

The recent rise in Libyan production has complicated an OPEC-led push to cut global production and bolster oil prices, from which Libya is exempt.

Sanalla said Libya had explained its production challenges to OPEC and non-OPEC producers, adding they understood.

Production is about four times higher than in mid-2016, but it is still held back by shutdowns, lack of maintenance and damage from past fighting.

Sanalla said 12 out of 19 storage tanks at the Es Sider oil port and half of 13 tanks at the Ras Lanuf terminal were still out of action following attacks there last year.

Last week, production at the key El Sharara oilfield resumed after an armed faction forced a shutdown in a salary dispute.

Libya has lost some $126 billion in revenue due to blockades over the past five years, Sanalla said.

Sanalla was speaking in London after attending a two-day gathering of more than 40 Libyan and international representatives which issued a draft statement of principles on ways to safeguard Libya's oil sector from security problems and political turmoil.

Participants included the governor of the central bank in Tripoli, tribal and municipal representatives, international oil companies and diplomats.

"The purpose is to protect Libya's oil," he said. "Libya without oil cannot be stabilised. Libya without oil cannot prosper." (Writing by Aidan Lewis and Ulf Laessing; Editing by Jane Merriman/Mark Potter/Alexander Smith)