Spanish energy multinational Repsol revealed a 32% decrease in its daily oil production in Libya, attributing the reasons to the ongoing political division in the country.
The company now produces 24,300 barrels of oil per day in Libya, compared to 35,700 barrels per day in 2021, it said in its latest half-year financial results published on Monday.
Repsol noted that “the deep institutional divide between the east and the west of Libya has renewed" and presents a new cycle of tension that moved into the oil sector. The company added that Libya's oil production between April and June was paralyzed due to security conditions.
Spain is among the countries that plan to increase investment in the Libyan oil sector as part of the efforts by some EU nations to replace Russian oil.
In late May, the Chairman of the Board of Directors of Libya's National Oil Corporation (NOC) at the time, Mustafa Sanalla, visited Repsol in Madrid, after an invitation from CEO Josu Jon Imaz.
A statement by the NOC confirmed that Repsol would resume exploratory drilling activity in contractual exploration areas during the third quarter of this year.