Libyan wealth is wasted, U.N. envoy says

18 Nov 2017   Libya

The humanitarian situation in Libya is in a severe state even though the OPEC-member sits on “vast wealth,” a United Nations envoy said. Ghassan Salamé, the U.N. special envoy for Libya, told members of the Security Council the situation in Libya has not improved much since the end of Moammar Gadhafi’s regime in 2011. The envoy testified that, at one point, Libya was one of the top humanitarian donors to Africa, but can now barely take care of its own needs. “It is outrageous that a country which stands upon such vast wealth has so many suffering,” he said. “However, it does, and so we must [help] them tackle the urgent concerns.” Libya is a […]

Libyan state oil firm confirms “security breach” at El Sharara oilfield

7 Nov 2017   Libya

Libya’s state oil company said on Monday there had been a “security breach” at its southern El Sharara oilfield on Sunday night.  NOC blamed weak security for the incident at a facility called 186 station, according to a statement posted after a NOC meeting that discussed the event. It gave no details of the incident and did not say whether production had been affected. Sponsored An engineer at the field said unknown people had attacked the station and stolen company cars and phones from employees. The El Sharara field lies deep in Libya’s south that is gripped by insecurity. It has closed several times due to protests by security guards asking for salaries or other groups, part of turmoil in the North African country since 2011. Last week, […]

Libya Loses 50,000 BPD In Production As Protests Continue

3 Nov 2017   Libya

The Libyan National Oil Company (NOC) said it was “very concerned” about the development of events in the area, adding notes that Wintershall had been reducing production without official notification. Libya is one of two African countries that have been allowed to take advantage of an exemption since January, when the Organization of Petroleum Exporting Countries began their deal to reduce supplies to the glutted market. Since the deal went into effect in January, both Nigeria and Libya have been recovering their capacity, making it harder and harder to justify their special treatment in the cartel. Several members in the bloc have made their opinions heard about the situation, but so far, no rumors about a change in status for the African duo have been heard. Despite the recovery in Libyan oil production over the course of 2017, Libya’s National Oil Corporation (NOC) has been able to […]

Libyan oil production gains limited

21 Oct 2017   Libya

War damage to port facilities in Libya could constrain production to around 1.25 million barrels per day, analysis from consultant group Wood Mackenzie found. Secondary sources reporting to the economists at the Organization of Petroleum Exporting Countries said Libya produced an average 923 million barrels of oil per day last month, down from the July peak of 1 million bpd. “Wood Mackenzie believes Libya may now be reaching its near-term production limits and future growth will be gradual,” the consultant group said in an emailed report. In early October, the EUobserver, citing a “restricted” report from the European Union’s Border Assistance Mission in Libya, described lingering fractures remaining in Libya six years after civil conflict led to the death […]

Libya’s Sharara Oil Field Resumes Production

5 Oct 2017   Libya

After a three-day suspension of production due to a blockade by an armed group, Libya’s giant Sharara oil field re-opened on Wednesday, Bloomberg reports, quoting an emailed statement by Libya’s National Oil Corporation (NOC). As of Wednesday, the NOC lifted the force majeure at Sharara—which had been closed since Sunday evening—and is able to restart delivering oil from Sharara to customers, the Libyan company said. Less than a month after Sharara returned to pump oil following a two-week disruption, the field closed again on Sunday evening, shutting in more than 230,000 bpd of Libya’s crude oil production. According to a trading source who spoke to Reuters on Monday, the latest shutdown at Sharara was due to a protest over salaries. Just before the oil field was closed on Sunday, it was producing around 236,000 bpd, an engineer at the oil field told Reuters. The armed group that had blocked […]

Libya’s Sharara Oil Field Closed Again, 230,000 Bpd Output Offline

3 Oct 2017   Libya

Less than a month after Libya’s giant oil field Sharara returned to pump oil following a two-week disruption, Sharara closed again on Sunday evening, and more than 230,000 bpd of Libya’s oil production is currently offline again, Reuters reported on Monday, citing an oil source and an engineer at the field. Libya’s National Oil Corporation (NOC) was “working towards a swift restart of production. At this moment, there are no plans to declare force majeure,” Reuters quoted the NOC as saying in a statement today. According to a trading source, the latest shutdown at Sharara was due to a protest over salaries. Just before the oil field was closed on Sunday, it was producing around 236,000 bpd, the engineer at the field told Reuters. Yesterday’s shutdown is the latest in a string of issues with blockades and closings at the Sharara field this year. At the beginning of last […]

OPEC-member Libya still in turmoil, EU report finds

3 Oct 2017   Libya

A European memo on the status of stability in OPEC-member Libya warns that progress in the war-torn country may be limited. The EUobserver reported Monday it obtained access to a “restricted” report from the European Union’s Border Assistance Mission in Libya that describes lingering fractures remaining in Libya six years after civil conflict led to the death of long-time ruler Moammar Gadhafi . “Sustainable progress may remain limited in the absence of a political solution, an end to the military conflict and a return to stability,” the 21-page document read. Last month, the mandate for the U.N. Support Mission in Libya was extended for another year. In its resolution , the U.N. Security […]

Libya’s giant Sharara oilfield closed as gunmen press demands

3 Oct 2017   Libya

FILE PHOTO: A general view of the El Sharara oilfield, Libya December 3, 2014. REUTERS/Ismail Zitouny/File Photo TRIPOLI (Reuters) – An armed group forced Libya’s giant Sharara oilfield to close late on Sunday, shutting off production of more than 230,000 barrels per day (bpd), the head of the state oil company said. Libya’s National Oil Corporation (NOC) declared force majeure on deliveries of Sharara crude, citing “unrest”, according to a letter seen by Reuters. NOC Chairman Mustafa Sanalla promised that production would restart by Monday evening. Sanalla told reporters that the armed group, Brigade 30, were demanding the release of group members who had been detained. In comments to Libya’s Channel TV station, he said they were guards demanding salary payments. It was unclear if the guards were employed in an official capacity at the field. A statement purporting to be from Brigade 30 said it had closed the […]

Russia’s Man in Libya Turns to the Street in Bid to Take Power

2 Oct 2017   Libya

Campaign says 700,000 people have signed pro-Haftar petition UN has declared its peace effort dead, will start again In a vast square in Benghazi, a group of men is gathering signatures for a petition calling on their military hero to move beyond his eastern fiefdom and take control of all Libya. They sit behind tables flanked by a portrait of Field Marshal Khalifa Haftar, who’s dressed in a gray suit rather than his usual uniform and is surrounded by fawning supporters. Haftar controls more territory than any other Libyan leader and some major oil facilities. The Popular Authorization Movement for Saving the Country wants to propel him to Tripoli, seat of the rudderless United Nations-backed government of Prime Minister Fayez al-Serraj. The campaign says it has collected 700,000 names — more than a 10th of Libya’s people and a figure critics dismiss as an exaggeration — and is being […]

Port in Libya’s Benghazi reopens after three-year closure due to clashes

2 Oct 2017   Libya

Benghazi’s commercial port officially reopened on Sunday after a three-year closure due to fighting between rival factions in the east Libyan city. To mark the opening Abdullah al-Thinni, prime minister of a government based in the east, arrived on board a tanker sent from the eastern city of Tobruk. The port does not export oil, but imports gas and some petroleum products as well as general cargo, and local costs for these would be reduced by the port’s reopening, port spokesman Nasser Al-Maghrabi said. “Today Benghazi port opened and a tanker from Tobruk entered as a message to the world that the port is safe and we are ready to receive tankers,” port manager Abdulazim Al-Abbar said by telephone. “Until now we have not received notification of tankers arriving for exports and imports – for now we are starting up and waiting.” Like Benghazi’s airport, […]

Libya Is Preparing To Ramp Up Oil Production

29 Sep 2017   Libya

As a rather bullish sentiment has fallen over the oil markets, Libyan oil production is now set to rise after disruptions at the Sharara oil field are now behind it, according to a new report by Bloomberg . Total output will reach 950,000 barrels per day as the Organization of Petroleum Exporting Countries (OPEC) battles a supply glut to force an increase in global oil prices. The Sharara field, the largest in the North African country, reached 230,000 bpd this week, according to an anonymous source that spoke to Bloomberg. In August, Libyan production had reached 1.05 million bpd, but weeks of unrest at major fields had since caused the growth to falter. OPEC should approach Libya and Nigeria, the two exempted OPEC members who were allowed to continue raising their crude oil output despite the November 2016 deal, Iran’s Oil Minister Bijan Namdar Zanganeh told journalists earlier this […]

Libyan oil production back to normal

9 Sep 2017   Libya

Operations at the Sharara oil field in Libya, the country’s largest, are back to normal following short-term “irregularities,” an Austrian energy company said. Mustafa Sanalla, the head of Libya’s National Oil Corp., blamed “gangsters” for shutting down some of the pipelines tied to the Sharara oil field in late August . That followed a worker protest at Sharara earlier in the month and the NOC said more than 360,000 barrels per day of Libyan crude oil production had been shut in at a cost of $160 million. A report from commodity pricing group S&P Global Platts, sent to UPI earlier this week, said Libyan crude oil production fell from July levels of 990,000 barrels per day to 830,000 barrels per day in August because of security issues […]

Largest Libyan Oilfield Back Online After Armed Assault

9 Sep 2017   Libya

Libya’s largest oilfield is now fully operational following a couple of weeks of output turbulence, according to UPI , who received official confirmation of the oilfield’s operational status from Austrian energy firm, OMV. The “irregularities” had been caused by “gangsters,” said Mustafa Sanalla, head of Libya’s National Oil Corp. In late August, the assaults by the armed group Reyayna Patrol Brigade had forced some of the pipelines connected to the Sharara field to be shut down. The ordeal cost $160 million in lost production after 360,000 barrels of output got shut in. Libyan output fell from 990,000 bpd in July to 830,000 bpd in August due to the pipeline closures. “After some short-term irregularities production is back to normal,” a spokesman for Austrian OMV told UPI. Reuters reported on Monday that foreign workers at Libya’s largest oil field bad been evacuated after news emerged of unspecified activities near the […]

Libya’s Biggest Oil Field Is Said to Resume Pumping Crude

8 Sep 2017   Libya

Libya’s largest oil field resumed production after a halt of more than two weeks, putting pressure on OPEC and other producers seeking to rein in a global supply glut and firm up prices.  Libyan authorities reopened a valve on the pipeline from the southwestern Sharara field to the Zawiya refinery after they reached a final agreement with a militia group that had closed the link, according to a person familiar with the matter, who asked not to be identified because the information is private. The pipeline’s reopening allowed Sharara to resume output, the person said.  State-run National Oil Corp. accused the group earlier of closing Sharara, El-Feel and Hamada oil fields since Aug. 19. NOC lifted the force majeure legal status that had been declared at Sharara and El Feel and which protects a company from liability if it can’t fulfill a contract for reasons beyond its control, the person said. El-Feel, also known as Elephant, and Hamada resumed production last week, other people familiar with the matter said at the time.

The North African nation’s crude output dropped 35 percent after the forced closing of the three fields, disrupting a revival of its production and exports. However, the decline helped ease the burden on the Organization of Petroleum Exporting Countries and allied suppliers as they seek to strengthen their accord to cut output. Libya, like its fellow OPEC member member Nigeria, is exempt from the global production cuts because of internal strife.  The NOC has blamed a militia organization it called the Rayayina Patrols Brigade for the disruptions, including the Aug. 19 shutdown of the pipeline valve that curbed Sharara’s output by 283,000 barrels a day. Sharara, with a production capacity of 330,000 barrels a day, is run by a joint venture between the NOC and Repsol SA, Total SA, OMV AG and Statoil ASA.

Libya Resumes Production At Largest Field Amid Rising Oil Prices

7 Sep 2017   Libya

Libya’s largest oil field, Sharara, will resume production following a two-week halt, after a pipeline blockade ended yesterday. This is what an unnamed source from Libya’s oil industry told Reuters, with the Sharara to resume output today, according to Bloomberg. The pipeline that was blocked feeds crude oil from Sharara to the Zawiya export terminal. The armed group responsible for the latest blockade, which began on August 19, was one led by Ashraf Al-Gurj—the leader of an organization from Zintan that calls itself the Reyayna Patrol Brigade. The same group was behind the August shutdown of another two fields as well, El Feel and Hamada. The three shutdowns cost Libya 360,000 bpd in lost output, the National Oil Corporation said at the time. Al-Gurj’s group claims they are fighting for more investments by NOC in Zintan but according to Libyan media, the more likely reason for the blockades is […]

No change in status for Libyan oil production, OMV says

1 Sep 2017   Libya

U.N. delegation tours Benghazi in early August. Special envoy Ghassan Salame says Libyans can’t understand why they’re power in an oil-rich country. Photo courtesy of the U.N. Support Mission in Libya. Sept. 1 (UPI) — There’s been no change in the Libyan production status since conflict sidelined hundreds of thousands of barrels of oil capacity, Austria’s OMV said Friday. Contacted by UPI on Friday, the company through a spokesperson said there is no change to the status of its operations in Libya. The Austrian energy company said production from some of its operations in Libya were offline and deferred the status to Libya’s National Oil Corp., which OMV said was working to “sort this out.” “There is no need for OMV to change the guidance of an average production in Libya of 20,000 barrels per day for 2017,” the spokesperson said. Libya’s NOC said earlier this week that more […]

OPEC Oil Output Slips From 2017 High On Renewed Libyan Outages

1 Sep 2017   Libya, OPEC

OPEC oil output has fallen this month by 170,000 barrels per day (bpd) from a 2017 high, a Reuters survey found, as renewed unrest cut supplies in Libya and other members stepped up compliance with a production-cutting deal. A dip in supply from top two producers Saudi Arabia and Iraq helped to boost OPEC’s adherence to its output curbs to 89 percent, up 5 percentage points from July but still short of the levels above 90 percent achieved earlier in the year. The decline from Libya, and the lack of a further sizeable increase from Nigeria, will ease concerns that extra barrels from the two nations could swamp cutback made elsewhere. Libya and Nigeria were exempt from the cuts because conflict had curbed their production. “Libya’s […]

Libya’s economic recovery hurt by attacks on oil centers

1 Sep 2017   Libya

With a loss from missing oil revenue, the closure of Libyan oil fields by militants is thwarting economic progress in the country, an oil director said. The Libyan National Oil Corp. said force majeure, a contractual condition related to circumstances beyond the control of the parties involved, was declared for production at three oil fields. The NOC said militants had shut in more than 360,000 barrels of oil per day in the west of the country at a cost of hundreds of millions of dollars. “This is a national tragedy,” NOC Chairman Mustafa Sanalla said in a statement . “Our production was recovering, not quite enough to balance the budget, but enough to give us hope that our financial position could stabilize.” The […]

Are Libyan Oil Production Gains History?

1 Sep 2017   Libya

In addition to the negative repercussions of hurricane Harvey, which heavily impacted the Gulf of Mexico oil and gas production and petrochemical plants, global oil markets are facing disruptions from the Middle East. The market has not been focusing on geopolitical security issues lately, but over the coming months geopolitics is sure to become an increasingly important factor. Political instability and civil wars, particularly those involving OPEC member states, are far from reaching a conclusion. The market’s optimism about the heavily reported production increases of Libya, Iraq and Nigeria may be misplaced. Libya’s return to the market, with production reportedly breaking 1 million bpd while targeting 1.3 million bpd, could already be a thing of the past due to growing instability on the ground. Libya’s production increases, which have been questioned by insiders, have proven to be unsustainable due to fighting between militias and government forces in oil producing […]

What’s Next For Libya As Oil Production Slips

29 Aug 2017   Libya

World Oil reports that an attack by an armed group caused the field’s pipeline to its nearest export terminal to close. The development sets Libya 330,000-bpd back on its goal of reaching and surpassing pre-Ghaddafi-ousting levels of production. On average, the country pumped 1.6 million barrels of oil per day before the Arab Spring brought the previous dictatorship to its knees. The El Feel field, another major oilfield, declared a force majeure last week, sources familiar to the case said, while expressing their hesitation due to the private nature of the matter. The same situation unfolded at the Hamada field, according to Arabian Gulf Oil Co. spokesman Omran al-Zwai. Just last month, Libya’s July output was at a four-year high , perhaps signaling the success of the fledgling regime backed by the might of Khalifa Haftar’s Libyan National Army. The Islamic State is moving in on Haftar if reports […]

Libya’s Sharara, El Feel oilfields closed by pipeline shutdowns: sources

28 Aug 2017   Libya

A local Libyan brigade has closed down two valves on a pipeline to Sharara oilfield, the country’s largest, to make demands for more fuel supplies and better economic conditions for the Zintan region, a source in Zintan said on Sunday. Another field, El Feel, has also been shut because of the pipeline blockade, and state-run National Oil Corp (NOC) has declared force majeure on Mellitah crude exports due to the closure, two Libyan oil sources said on Sunday. Sharara, which was producing around 280,000 barrels per day, had been shut down a week ago, engineers said, and NOC declared force majeure on loadings of Sharara crude from the Zawiya oil terminal, according to a company document. Another brigade tasked with oil facilities protection has closed a pipeline leading to the Hamada field, […]

British foreign minister visits oil-rich Libya

26 Aug 2017   Libya, United Kingdom

A NATO member with a legacy of energy-related interests, the British government said it was working to ensure Libya evolves as a safe and stable partner. British Foreign Minister Boris Johnson met with Libyan military officials in Benghazi, marking the first time for such a visit since 2011. The British government said the visit was an indication of its interest in working to bring peace and stability to Libya. “A secure and stable Libya, better able to deal with the threat from terrorism and the challenge of migration, is firmly in the United Kingdom’s interests,” the minister said in a statement . At the time of the last visit by a […]

Libya’s Largest Oilfield Offline, Amid Uncertainty, ISIS Beheadings

24 Aug 2017   Libya

Weighing in on oil price uncertainty, market watchers have been in a state of confusion over varying reports over the past three days as to the status of exports from Libya’s biggest producing oilfield. Earlier this morning, news reports citing National Oil Company (NOC) sources said production had resumed at Sharara, following a three-day blockade of the pipeline that feeds crude to Zawiya export terminal. Reports said that the Tripoli-based NOC—recognized by the UN as the legitimate NOC–announced it was lifting the force majeure on shipments of oil pumped from the country’s largest oilfield—the Sharara—to the Zawiya port. However, a Reuters report citing unnamed Libyan officials, the field remains offline for unclear reasons. The same report noted that operations had restarted yesterday at least once, for a short period. “They open one valve, they close the other,” one unnamed sources told Reuters. It was suggested that “negotiations” were underway […]

Libya’s Biggest Oil Field Shut Down As Tensions Rise

22 Aug 2017   Libya

The shutdown of Libya’s Sharara oilfield, the country’s largest field, has once again shown that expected production growth of several OPEC countries should not be taken for granted. Even though several media sources have been publishing overwhelmingly optimistic reports about the security situation in the country, especially after the unexpected production boost of Libya’s battered oil and gas sector, the perceived ‘peace’ between General Khalifa Haftar’s LNA and the East Libyan government (HoR), remains shaky at best. A pipeline blockade by an armed group has hindered the loading of Sharara crude from the Zawya oil terminal since Sunday. Libya’s national oil company, NOC, has already declared a force majeure. The Sharara oil field, run by a JV of Libya’s NOC and international oil companies Repsol, Total, OMV and Statoil, is crucial to the revival of Libyan oil production, as it is currently producing around 280,000 bpd. In the past […]

Libya’s Sharara oilfield shut by pipeline blockade: sources

21 Aug 2017   Libya

Libya’s Sharara oilfield, the country’s largest, has been shut down since Saturday because of a pipeline blockade, industry sources and an engineer said. State-owned National Oil Corporation (NOC) declared force majeure on loadings of Sharara crude from the Zawiya oil terminal on Sunday, a document seen by Reuters showed. Sharara had been producing up to 280,000 barrels per day (bpd) in recent weeks. The field has experienced several temporary shutdowns because of protests by armed groups and oil workers since it reopened last December after a two-year pipeline blockade. A Libyan oil source said the group blockading the pipeline since Saturday had also shut it in the past. The exact location of the blockade and the group’s demands were not clear, an industry source said. There was no immediate comment from NOC in […]

Shell Loads Oil in Libya for the First Time in Five Years

21 Aug 2017   Libya

Libya has also attracted Wintershall, Rosneft this year Nation is exempt from OPEC’s agreement to cut oil production Royal Dutch Shell Plc, the world’s largest oil trader, is said to have loaded its first crude from Libya in five years over the weekend, adding to evidence of the OPEC nation’s comeback. The cargo on Saturday is for 600,000 barrels of crude from the Zueitina port, according to two people familiar with the matter who asked not to be identified because the information is private. A Shell spokesperson declined to comment on the shipment, but said the company’s Shell International Trading & Shipping “has a history marketing Libyan crudes. We welcome new business opportunities with Libya’s National Oil Corp.” Mustafa Sanalla, chairman of the NOC, didn’t answer phone calls seeking comment. Libya this year attracted Germany-based Wintershall AG and Russia’s Rosneft PJSC as investors amid signs of stability in the […]

Libya Gets Better at Keeping Oil Flowing as Industry Stabilizes

18 Aug 2017   Libya

Libya’s getting better at resolving stoppages in its oil industry, underpinning a growing perception that the OPEC member is closer to becoming a stable producer again. (Bloomberg) — Libya’s getting better at resolving stoppages in its oil industry, underpinning a growing perception that the OPEC member is closer to becoming a stable producer again. That’s because of the duration of the incidents. While in prior years protests could shutter fields for months and years, now the stoppages are being resolved within days and barely hindering flows. Sharara, Libya’s biggest field, had several short disruptions this year, including two this month, after being closed for more than two years. Mustafa Sanalla, chairman of state-run National Oil Corp., was quick to visit Sharara this week to resolve the latest dispute, offering to revise security measures. “One fundamental change that allows upstream activities to restart quickly after a disruption is that Sanalla […]

Libya Boosts Oil Output At Biggest Field

17 Aug 2017   Libya

Crude oil output at Sharara–the biggest field in Libya, which is exempt from OPEC cuts–rose to 230,000 bpd on Tuesday—a 30,000 bpd increase just since Sunday, Bloomberg reports , citing an unidentified source familiar with the issue. In another boost to Libyan oil exports, the Zueitina oil terminal resumed loading, Merhi Abridan, head of the Zueitina workers’ union, told Bloomberg. The Zueitina oil terminal had ceased loading cargos on Sunday, as port workers protested, demanding better working conditions. This meant that oil coming from the fields around Zueitina was to be stored at the port for the duration of the protest, and a spike in exports would likely follow. As of Sunday, Bloomberg sources claim that Sharara’s output had fallen by 100,000 bpd over the past week, to 200,000 bpd. There had been an incident involving the theft at gunpoint of two vehicles property of Repsol, the company operating […]

Libyan Oil Liberator Aims To Boost Russian Ties

16 Aug 2017   Libya, Russia

In a sign that Libya’s powerful military is moving closer to Russia, Libyan National Army (LNA) commander Khalifa Haftar—the man responsible for recapturing the country’s oil ports and essentially restarting production—is meeting top officials in Moscow. Haftar is the key political and military rival to the Western-backed central government in Tripoli, and his trip to Russia indicates a fragile game of alliances that could upset the delicate balance of control over Libyan oil. Last weekend’s was not Haftar’s first visit to Moscow: he had visited Russia at least twice in the past year, and has been forging friendly relations with Moscow, while the U.S. is supporting the increasingly weakened internationally recognized Government of National Accord (GNA). During Haftar’s meeting with Russia’s Defense Minister Sergei Shoigu this past weekend, “Special attention was paid to situation in the North Africa focusing on situation in Libya. The parties stressed the importance of […]

Libya’s Sharara oilfield output dropped after security breaches: engineer

16 Aug 2017   Libya

Production at Libya’s Sharara oilfield dropped to between 130,000 and 150,000 barrels per day (bpd), from about 280,000 bpd, because of recent security breaches, an engineer who works at the field said on Tuesday. Field employees had difficulty accessing some of the field’s facilities after cars and mobile phones were stolen, said the engineer, who did not want to be named because he was not authorized to speak to the media. It was not clear if production at Sharara had recovered since the security problems, which occurred several days ago. On Monday, the National Oil Corporation (NOC) said security breaches in recent days were the result of an individual act, that the perpetrator had been punished and that the field was safe and secure. It gave no information about any impact on […]

Oil Prices Inch Higher As Libya Closes Crude Export Terminal

15 Aug 2017   Libya, Prices

The Zueitina oil terminal in Libya has ceased loading cargos as port workers protest, demanding better working conditions, Bloomberg quoted the head of the workers’ union Merhi Abridan as saying. This means that oil coming from the fields around Zueitina will be stored at the port for the duration of the protest, and a spike in exports will likely follow. Zueitina is managed by a joint venture between the National Oil Corporation, Occidental Petroleum, and Austria’s OMV. The port exports an average of six 600,000 to 630,000-barrel cargoes a month, Abridan told Bloomberg. The workers at the port are demanding to be paid 20 months worth of delayed salaries, as well as health insurance, annual leave, payments for overtime work, and more time for maintenance work. At the same time, however, Libya’s overall crude output has been reduced by a decline in the production from its biggest field, Sharara. […]

Libya’s Oil Output Disrupted by Security Threats, Shut Terminal

14 Aug 2017   Libya

Sharara oil field output said to drop to 200,000 barrels a day Zueitina terminal ceased loadings on Saturday: union chief Libya’s biggest oil field has reduced crude production by more than 30 percent in recent days and the Zueitina export terminal ceased loadings over the weekend, throwing the OPEC country’s output back on a downward spiral. Output at the Sharara field was down to 200,000 barrels a day on Sunday, compared with 300,000 barrels a day about a week ago, a person familiar with the matter said Sunday, asking not to be identified because the information is confidential. Workers were being kept from certain areas for their own safety after two company vehicles were stolen at gunpoint, the person said. Zueitina port ceased loading on Saturday after employees demanded better working conditions, according to Merhi Abridan, head of the worker’s union. Libya’s crude output and exports reached a three-year […]

Oil prices fall further as Libyan field resumes production

9 Aug 2017   Libya

Oil prices slipped further in Asian trading on Tuesday following a recovery in output at Libya’s largest oil field and as doubts about OPEC-led production cuts continue to weigh on the market. Global benchmark Brent crude futures were down 23 cents, or 0.4 percent, at $52.14 a barrel at 0244 GMT after dipping 0.1 percent in the previous session. U.S. crude futures were down 18 cents, or 0.4 percent, at $49.21 a barrel, having fallen 0.4 percent on Monday. Production from Libya’s 270,000 barrels-per-day (bpd) Sharara field was returning to normal after a brief disruption when armed protesters broke into a control room in the coastal city of Zawiya, the National Oil Corporation (NOC) said on Monday. Libya was exempted from a push to cut global production and bolster oil prices led by the Organization of the Petroleum Exporting Countries (OPEC) and other big producers like […]

Oil prices fall further as Libyan field resumes production

9 Aug 2017   Libya

Oil prices slipped further in Asian trading on Tuesday following a recovery in output at Libya’s largest oil field and as doubts about OPEC-led production cuts continue to weigh on the market. Global benchmark Brent crude futures were down 23 cents, or 0.4 percent, at $52.14 a barrel at 0244 GMT after dipping 0.1 percent in the previous session. U.S. crude futures were down 18 cents, or 0.4 percent, at $49.21 a barrel, having fallen 0.4 percent on Monday. Production from Libya’s 270,000 barrels-per-day (bpd) Sharara field was returning to normal after a brief disruption when armed protesters broke into a control room in the coastal city of Zawiya, the National Oil Corporation (NOC) said on Monday. Libya was exempted from a push to cut global production and bolster oil prices led by the Organization of the Petroleum Exporting Countries (OPEC) and other big producers like […]

Libyan oil production issue resolved

9 Aug 2017   Libya

Libyan oil disruption resolved and production is ramping up, a spokesperson for an energy company with a stake in operations said. File photo by cherezoff/Shutterstock Aug. 8 (UPI) — Matters that led to a disruption at Libya’s largest oil field have been resolved and the situation is improving, a spokesperson for an energy company said. A worker protest during the weekend led to halt in production from the Sharara field, the nation’s largest. According to Bloomberg News, which first reported the disruption , the field was pumping around 275,000 barrels per day by the latest count from July. A spokesperson from Austrian energy company OMV, which has a stake in those operations in the country, told UPI in response to emailed questions that “the issue is solved and production is ramping up.” Libya holds, by OMV’s estimate , around 47 billion barrels of oil. Onshore areas are considered mature, […]

Libya’s Sharara oil field gradually shutting down: engineer

7 Aug 2017   Libya

 Libya’s Sharara oilfield, which has been producing 270,000 barrels a day (bpd), is gradually shutting down after the closure of a control room in the northern city of Zawiya, an engineer at the field said late on Sunday. The engineer did not give details of why the control room had closed but posts by oil workers on Facebook said it had been stormed by an armed group. Libya has been exempted from an OPEC-led push to cut global production and bolster oil prices and the recovery of the North African country’s output over the past year has complicated the bloc’s efforts to curb global supply. A Libyan oil source, who confirmed Sharara was being shut down, said supplies of gasoline and jet fuel from Zawiya, which is home to an export terminal and a refinery, had also been halted. There was no immediate comment from the […]

A reporter’s journey through Tripoli: Long lines, kidnappings and murder

2 Aug 2017   Libya

The line at the bank was two blocks long and Abdul bin Naji was once again praying for the doors to open. He desperately needed his $60. With Libya in the throes of a currency crisis, that was the weekly limit for withdrawals. For the past month, though, the bank hadn’t had any cash. That didn’t stop bin Naji and hundreds of others from arriving every night to get a good spot in line. On this morning, the unshaven airline employee was third from the door. At 10 a.m., the bank still hadn’t opened. “Thirty-two days and no money,” he sighed. Excruciatingly long bank lines are the latest misfortune for Libyans trapped in a cycle of war and economic upheaval. Six years after the revolution that toppled dictator Moammar Gaddafi, the mood […]

Unlikely humanitarians – shippers returning to Libya face a tough moral dilemma

26 Jul 2017   Libya

A surge in Libyan oil exports — production has increased sharply in the past few months, jumping to four-year highs of over 1 million b/d this month — is seeing more and more oil tankers travel to and from the North African country’s key oil terminals, increasing tanker activity and pushing up freight rates in the Mediterranean. So far, so good for shipowners. But as more tankers call at Libyan ports, something which they were happy to avoid altogether less than a year ago, they can find themselves being drawn into the role of unlikely — and possibly begrudging — humanitarians. Increasingly they are receiving calls to assist unseaworthy vessels carrying migrants heading for Europe, shipping sources say. Under the International Convention for the Safety of Life at Sea (SOLAS) — which was first introduced after the sinking of the Titanic — all vessels have a legal obligation to […]

Libya’s Oil King Won’t Be Stopped By OPEC

24 Jul 2017   Libya

Conflict-torn Libya, divided between rival factions in the east and the west, recently reached 1 million bpd of crude oil output—for the first time since 2013. The oil production recovery has put in the spotlight the chairman of Libya’s National Oil Corporation (NOC), Mustafa Sanalla, whom analysts see as a central figure in the oil sector, wearing the hats of both a diplomat and an oil minister. It will be Sanalla who will lead Libya’s delegation at the upcoming meeting of the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) in Russia, at which he will argue his country’s position and share production plans for the immediate future. And the monitoring committee will be eager to find out how much Libya’s plans could further offset the cartel and friends’ production cuts, from which the African nation is—for now at least—exempt. Winning exemption at the time of the November OPEC deal wasn’t […]

Backing Of Workers, Communities Key To Libya’s Oil Revival

21 Jul 2017   Libya

When the head of Libya’s state energy company visited Sharara oil field in early July, community leaders and workers crowded into a conference room to ask about jobs, training and services for local people. When, they asked, would their villages start to see the benefit of the country’s rising oil production? “You’ve been very patient,” Mustafa Sanalla reassured them, before adding: “You need to be patient a little longer.” Libya’s National Oil Corporation (NOC) raised output to more than one million barrels per day (bpd) at the end of June for the first time since 2013, a feat that seemed near impossible after the chaos that followed […]

Libya’s NOC chief to attend OPEC, non-OPEC meeting: statement

18 Jul 2017   Libya, OPEC

The head of Libya’s National Oil Corporation (NOC) said on Tuesday he would lead a Libyan delegation to a meeting of OPEC and non-OPEC oil producers in St Petersburg, Russia on July 22 to share his country’s production plans. NOC Chairman Mustafa Sanalla will share with a technical committee “the factors enabling and constraining Libya’s production recovery”, he said in a statement. “I will consult with significant Libyan decision-makers before I leave and hope to present a unified Libyan position in St Petersburg that will show we can act together in the national interest,” Sanalla said. The technical committee involving six OPEC and non-OPEC members is due to convene before ministers from the countries hold talks in the Russian city on July 24. OPEC members Libya and Nigeria have boosted production since they were exempted from an OPEC-led deal to cut output, weighing on global prices. […]

Libya gains balance Nigerian oil loss

15 Jul 2017   Libya, Nigeria, OPEC

Officials from a state oil company in Libya brief representatives from Norwegian energy company Statoil about the potential to bring production back to normal levels. Photo courtesy of the Libyan National Oil Corp. July 14 (UPI) — Disruption to Nigerian oil exports is offset by production gains from Libya, which is on pace to add another 100,000 barrels per day to the market, a market report found. Nigeria and Libya are two members of the Organization of Petroleum Exporting Countries exempt from a multilateral effort to balance the market with production declines so they can steer oil revenue to national security efforts. Since the deal was implemented in January, both countries have stabilized somewhat and in part undermined the broader OPEC-led effort. OPEC economists in their monthly market report for July said that, combined, Nigeria and Libya were adding about a quarter million barrels of oil per day to […]

Capping Libya, Nigeria Output Won’t Help Erase The Glut

14 Jul 2017   Libya, Nigeria, OPEC

The steady recovery of oil production in Libya and Nigeria in recent months has prompted OPEC to consider limiting the output of the two African producers that are currently exempt from cuts in the deal. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) is gathering in Russia on July 24, and has invited Nigeria and Libya to attend to discuss their current production and short-term plans. According to Kuwait’s Oil Minister Issam Almarzooq, OPEC might ask the two nations to cap output as soon as possible. Talk of Libya and Nigeria possibly capping crude production has had little effect on the market, and analysts doubt that a limit would be lower than the current production of the two countries. Observers think that the two producers would agree to cap output when they reach their short-term production targets, which is 1.25 million bpd for Libya and 1.8 million bpd for Nigeria. […]

More oil possible from Libya, Nigeria, a report finds

7 Jul 2017   Libya, Nigeria, OPEC

A report Thursday from oil pricing group Platts stated that more production is possible from OPEC members Libya and Nigeria, adding to supply-side concerns. A survey of production from members of the Organization of Petroleum Exporting Countries by Platts found total group production rose 220,000 barrels per day between May and June. Total production last month was a six-month high for OPEC. OPEC, with support from non-member state producers like Russia, is coordinating an effort to balance a lopsided market with managed production declines. Libya and Nigeria are exempt from the arrangement so they can support national security efforts with oil revenue. Platts reported that Libyan oil production in June was around 810,000 barrels per day for its highest level in nearly […]

Libya’s eastern commander declares victory in battle for Benghazi

6 Jul 2017   Libya

FILE PHOTO: General Khalifa Haftar, commander in the Libyan National Army (LNA), leaves after a meeting with Russian Foreign Minister Sergei Lavrov in Moscow, Russia, November 29, 2016. REUTERS/Maxim Shemetov/File Photo Libya’s eastern commander Khalifa Haftar said on Wednesday his forces had taken full control of Libya’s second city Benghazi from rival armed groups after a three-year campaign. The battle for Benghazi between Haftar’s self-styled Libyan National Army (LNA) and an array of Islamist militants and other fighters has been part of a broader conflict since Libya slipped into chaos following the 2011 fall of strongman Muammar Gaddafi. Victory would mark a major advance for the former Gaddafi ally who has slowly gained ground in eastern and southern Libya in defiance of a U.N.-backed government in the west in the capital Tripoli that is struggling to extend its influence. “Your armed forces declare to you the liberation of Benghazi […]

Libya reviews oil production stimulus with Norway’s Statoil

21 Jun 2017   Libya

After resolving issues with German energy company Wintershall, Libya’s state oil company said it reviewed raising production during talks with Norway’s Statoil. The Libyan National Oil Co. signed an agreement last week with Wintershall that outlines a resumption of oil production from some of its license areas on an interim basis. NOC Chairman Mustafa Sanalla said the agreement gives Wintershall enough of a production share to cover its costs and ends a costly shutdown. In a Tuesday statement , the NOC said Sanalla met in Tripoli with Fadel Hareeb, a regional manager for Norwegian energy company Statoil. The NOC said its chairman aims to attend a workshop in Norway in September on ways […]

Libya Oil Output Hits 885,000 Bpd

20 Jun 2017   Libya

Libya is producing 885,000 barrels of crude oil daily after last week it reached an agreement with German Wintershall that will see the latter restart production at fields with a combined output of 160,000 bpd, a source from the country’s oil industry told Reuters. Since the announcement of the agreement, total Libyan output has jumped by 50,000 bpd. The North African country, which has been exempted from the OPEC production cut deal, now aims to raise production to 1 million bpd by the end of next month. This plan, and the fact that it is not as far-fetched as it may have seemed a few months ago amid clashes between armed groups at some of the main oil export points in the Oil Crescent, is bound to weigh on oil prices. Last month, it was Libya whose increase in oil production drove an overall rise in OPEC output, which […]

OPEC Deal In Jeopardy As Libyan Oil Output Nears 1 Million Bpd

19 Jun 2017   Libya, OPEC

Libya—whose production has been hampered by civil unrest, political divides, and oil export terminals blockades over the past few years—is now targeting to further increase its oil output. Its most immediate goal is to reach 1 million bpd of production by the end of July, which would further complicate OPEC’s desperate efforts to reduce global inventories and prop up oil prices. And its ambitions seem plausible. Just last month, when OPEC was discussing rolling over the output reduction deal, production-cut-exempt Libya hit its highest daily production level since 2014. Earlier this week, OPEC reported that total cartel production in May was actually higher than in April, with Libya the biggest single contributor to that increase. Analysts warn, however, that Libya’s output increase is not a for-sure thing. Production could sharply drop again, given the political rivalry between factions and the fragile security situation in country. Both scenarios—that Libya could […]

Libya sees oil production gains ahead –

15 Jun 2017   Libya

An agreement with German energy company Wintershall means Libya has a better chance of meeting oil production goals, a national oil company said.  The Libyan National Oil Co. said it signed an agreement with Wintershall that outlines a resumption of oil production from some of its license areas on an interim basis. NOC Chairman Mustafa Sanalla said the agreement gives Wintershall enough of a production share to cover its costs and ends a costly shutdown.  “I hope we can now get on with the business of meeting our oil production targets without interruptions,” Sanalla said in a statement.

Libya’s NOC, Wintershall Agree To Resume 160,000 Bpd Output

15 Jun 2017   Libya

Libya’s National Oil Corporation (NOC) said on Tuesday that it had reached an interim deal with Germany’s Wintershall to immediately resume production in concession areas and related fields, which would unblock 160,000 bpd worth of production that has been shut-in for most of the past two years over a dispute between the companies. “This shutdown was enormously costly to Libya. I hope we can now get on with the business of meeting our oil production targets without interruptions,” NOC chairman Mustafa Sanalla said in the statement. Last month, Sanalla said that a commercial dispute between Libya and Wintershall had shut in more than 160,000 bpd of output, costing the country nearly US$250 million monthly. “ We would be producing almost 1 million bpd if it were not for Wintershall’s refusal to implement terms it agreed to in 2010,” NOC’s chairman noted in a press release back then. According to […]