Libya plans to boost its oil output to 2m brl/d in 2007, rising to 3m brl/d in 2010, from its current production of about 1.6m brl/d, National Oil Co (NOC) chairman Dr Shukri Ghanem said recently. This boost in production is expected to be fuelled in the short term by modern and more effective extraction infrastructure at existing fields and in the mid-long term with new exploration and production contracts auctioned through Libya's awaited third licensing round. Dr Ghanem said that the third licensing round of oil exploration blocks is expected to be announced during September, and in three-four months the blocks will be assigned. "We are currently deciding the blocks to be offered," he said, adding that the blocks will be awarded through a "free bidding process" and not through directly negotiated agreements. Libya offers great potential for new oil strikes since only about 25% of its oil and gas acreage is covered by exploration licences and most of the country has not been explored using modern techniques. Analysts expect the country to offer over 100 new areas containing at least 360 blocks in the next few years. A high ranking NOC official and aid to Dr Ghanem said: "Currently our proven reserves stand at about 38-40bn barrels, but we have the potential to at least double that figure." After being restrained by UN and US oil sanctions since the 1980s, Libya's production is now set to increase thanks to the lifting of these embargoes in 2003 and 2004, since when many US companies formally operating in the country have now returned. "Companies are returning to Libya and we are increasing production," Dr Gharem said. He noted, however, that while "the problems have been solved with the US and its companies are very interested in working in Libya... we will give no special preference to particular companies (in the third licensing round)... neither to the US nor to any other country."