Libya

Why Libya Oil Revival Hinges on Fate of Two Ports

22 Mar 2017   Libya

Libya’s ability to reclaim its role as a reliable supplier of crude depends on the fate of a pair of oil ports on the war-ravaged country’s coast. Es Sider and Ras Lanuf have changed hands twice this month as rival military groups have battled over them. The two ports hold almost half of Libya’s capacity to export oil from onshore terminals, and the country’s ability to sell abroad affects prices globally.

Libya’s oil ports have been a focus of competing political forces since central authority collapsed after the 2011 ouster and killing of strongman Muammar Qaddafi. Es Sider and Ras Lanuf are especially valuable because they are the main outlets for crude pumped at fields in Libya’s interior. When operating normally, Es Sider can export as much as 340,000 barrels a day, while Ras Lanuf can ship 220,000 barrels a day. Located in Libya’s so-called Oil Crescent along its central Mediterranean coast, the terminals together account for 47 percent of the total capacity of the country’s onshore oil ports. Whoever controls them has a grip on Libya’s most important source of income.

The ports were badly damaged in fighting in December 2014 and closed for 21 months. The National Oil Corporation reopened the terminals in September, but they stopped shipping cargoes abroad this month because of the latest hostilities. The export halts have had a knock-on effect on oil production: storage tanks at the terminals become full, pipelines feeding them back up with crude, and fields that produce the oil must curtail output. The new round of fighting over control of the ports starting in early March curbed the country’s oil production but left the facilities almost undamaged.

Libya Ports Poised to Ship Oil as Workers Back After Clashes

21 Mar 2017   Libya

Libya’s major oil ports of Es Sider and Ras Lanuf are resuming operations and preparing to export crude after a two-week halt in shipments due to military clashes in the holder of Africa’s largest crude reserves. Libya’s total production rose to 646,000 barrels a day from 621,000 barrels on Sunday mostly due to an increase from Waha Oil Co., Jadalla Alaokali, a National Oil Corp. board member, said Monday by phone. Waha Oil feeds into Es Sider, the country’s biggest oil port. Staff are returning to Es Sider and Ras Lanuf, its third-largest, and exports are set to restart in a week to 10 days, Alaokali said Sunday. “Both ports are ready to restart exports,” Alaokali said. Waha Oil, a joint venture between the NOC, Hess Corp., Marathon Oil Corp. and ConocoPhillips, suspended production earlier this month after clashes between armed factions in the politically divided nation forced Es […]

Russia enlarges military footprint in Libya

21 Mar 2017   Libya, Russia

Libyan Field Marshall Khalifa Haftar, a fiery commander in eastern Libya, has declared war against radical Islamists, including the Islamic State and al-Qaida, but is controversial for perceived iron-fist tactics. Photo courtesy of Wikipedia TUNIS, March 20 (UPI) — Russia, 19 months after becoming a key player in the Syrian war, is increasing its military presence in Libya and is likely to back Libyan Field Marshal Khalifa Haftar in the tumultuous civil conflict. Haftar, a fiery commander in eastern Libya, has declared war against radical Islamists, including the Islamic State and al-Qaida, but is controversial for perceived iron-fist tactics. In September, Haftar gained control of main oil terminals in the country’s east but lost ground to Islamist forces early this month. While Haftar has received intelligence and security support from France, Britain and the United States, as well as backing from Egypt and the United Arab Emirates, Western countries […]

Who Gets Control Of Libya’s Oil As The Guns Go Silent?

21 Mar 2017   Libya

The Libyan National Oil Corporation expects to soon regain control over the Es Sider and Ras Lanuf oil terminals, which were the point of clashes between the Libyan National Army and the Benghazi Defense Brigades that ended last week with the LNA taking the ports back from the BDB. Although there was doubt as to whether the LNA would be willing to pass control over the ports to the NOC again, the company’s chairman told Reuters there is no reason to doubt. Doubts are likely to remain, however, as last week saw developments that may lead to the split of the NOC along government/parliament lines. The LNA is loyal to the Tobruk-based House of Representatives, the Libyan parliament, which opposes the UN-backed Government of National Accord. The GNA, together with Libya’s central bank, controls the oil export revenues from the four ports in the Oil Crescent. When the LNA […]

Libya Ports Poised to Ship Oil as Workers Back After Clashes

21 Mar 2017   Libya

Libya’s major oil ports of Es Sider and Ras Lanuf are resuming operations and preparing to export crude after a two-week halt in shipments due to military clashes in the holder of Africa’s largest crude reserves. Libya’s total production rose to 646,000 barrels a day from 621,000 barrels on Sunday mostly due to an increase from Waha Oil Co., Jadalla Alaokali, a National Oil Corp. board member, said Monday by phone. Waha Oil feeds into Es Sider, the country’s biggest oil port. Staff are returning to Es Sider and Ras Lanuf, its third-largest, and exports are set to restart in a week to 10 days, Alaokali said Sunday. “Both ports are ready to restart exports,” Alaokali said. Waha Oil, a joint venture between the NOC, Hess Corp., Marathon Oil Corp. and ConocoPhillips, suspended production earlier this month after clashes between armed factions in the politically divided nation forced Es […]

Exclusive: Libya’s NOC says expects to regain Es Sider, Ras Lanuf oil ports

20 Mar 2017   Libya

Libya’s National Oil Corporation (NOC) has been coordinating with military forces from eastern Libya and has “no reason to believe” it will not regain control of the Es Sider and Ras Lanuf oil ports, NOC’s chairman said. The loss and recapture of the ports this month by the eastern-based Libyan National Army (LNA) had raised doubts over its willingness to let the Tripoli-based NOC manage the ports. Revenue from the sites is controlled by a central bank and U.N.-backed government in the capital which pro-LNA factions oppose. Eastern officials accuse rivals in Tripoli and the western city of Misrata of supporting a March 3 attack on the ports by a faction known as the Benghazi Defense Brigades (BDB). An oil guard commander appointed by the […]

Russia Urges Calm After Libya Strongman It Backs Takes Oil Ports

17 Mar 2017   Libya

Russia urged restraint after a powerful Libyan military commander that it supports regained control of key oil facilities taken by forces loyal to the United Nations-backed government.  “We urge all the conflicting Libyan sides to show common sense and to refrain from the use of force to avoid the danger of escalation of civil conflict,” Foreign Ministry spokeswoman Maria Zakharova told reporters in Moscow on Thursday.  Troops loyal to Khalifa Haftar, the eastern Libyan commander who’s in conflict with the UN-backed government in the capital, Tripoli, recaptured the country’s biggest port, Es Sider, and its third-largest, Ras Lanuf, on Tuesday after weeks of clashes that curbed oil production.  The fighting, including airstrikes, dealt a blow to international efforts to restore stability in the country that has Africa’s largest crude reserves. The ports had been seized by a rival group earlier this month that passed control of them to the government, which urged Haftar’s army not to bomb the oil facilities.

Oil production ongoing in Libya, OMV says

16 Mar 2017   Libya

A spokesperson for Austrian energy company OMV said oil production in Libya is ongoing and the opportunity for gains is expected this year.  Libya is one of the members of the Organization of Petroleum Exporting Countries exempt from a deal limiting oil production so it can steer its oil revenue toward national security issues. Libya has struggled with security issues at least since the so-called Arab Spring movements and production has been far below historic peaks at about 1 million barrels per day.  Industry sources reported Libyan production declined 111,000 barrels per day to around 600,000 barrels per day as conflict reignites in the so-called oil crescent. The U.N. High Commissioner for Human Rights said Tuesday it’s seen reports of summary executions and torture in the conflict zones in Libya.

Libya’s eastern parliament speaker says Russia offered aid

15 Mar 2017   Libya

The speaker of the parliament based in the eastern part of Libya says Russia has promised military assistance. House of Representatives President Agila Saleh told Russia’s state RIA Novosti news agency Tuesday that authorities in the east have asked Moscow to help train army personnel and repair military equipment. Saleh says that “we were promised assistance in the fight against terrorism.” In January, Field Marshal Khalifa Hifter, a military chief allied with the parliament opposed to the U.N.-backed government in Tripoli, visited a Russian aircraft carrier off Libya’s coast and had a call with the Russian defense minister. Russia also hosted Faez Sarraj, the prime minister of the government in Tripoli, this month in an apparent effort to expand its clout in the fractured country by talking to both sides.

Libya Crude Oil Output Said to Fall 11% on Field, Port Closings

13 Mar 2017   Libya

Libya’s crude output dropped 11 percent as clashes among rival armed groups over the last 10 days led to the closing of some of the OPEC nation’s biggest oil export terminals, forcing a number of fields to halt production. Output fell by about 80,000 barrels a day to 620, 000 barrels since fighting among armed groups broke out on March 3, according to a person familiar with the matter, who asked not to be identified because of a lack of permission to speak to media. Es Sider, the country’s biggest oil port, and Ras Lanuf, its third-largest, remain closed, according to the person. Crude production halted at Waha Oil. Co., which pumps crude to Es Sider. Waha is a joint venture between the state oil company National Oil Corp., Hess Corp., Marathon Oil Corp. and ConocoPhillips. The clashes dealt a blow to recent gains in the North African nation’s […]

Libyan Oil May Be Slipping Out Of Putin’s Reach

13 Mar 2017   Libya

Last Friday, news broke that the Benghazi Defense Brigades seized control of two major Libyan ports on the “Oil Crescent,” posing a real challenge to Khalifa Haftar and Russia’s grip on the area after weeks of clashes. According to the unified National Oil Corporation (NOC), the takeover of the Ras Lanuf and Es Sider ports has caused exports to fall by roughly 80,000 barrels per day to a rate of 620,000 bpd. The commercially vital area has now turned into a military zone with Haftar’s Libya National Army on the sidelines. The BDB clarified this week that it had handed the crucial ports over to the Petroleum Facilities Guard (PFG), which is allied with the United Nations-sanctioned Government of National Accord in Tripoli – an institution Haftar has repeatedly refused to recognize after multiple invitations to join its leadership hierarchy. The latest refusal came in Cairo, a city considered […]

Tanker to Libya’s Biggest Oil Port Diverted to Avoid Conflict

10 Mar 2017   Libya

An oil tanker that was scheduled to load crude at Libya’s Es Sider port changed its course to a different terminal in the west of the country as clashes in the eastern region keep the main export terminals out of service. Waha Oil Co. halted production due to the conflict. The tanker Overseas Redwood, originally due to load 630,000 barrels of crude at Es Sider on Thursday, will arrive instead at the port of Zawiya, according to a person familiar with the matter, who asked not to be identified because the information isn’t public. Production from Waha Oil. Co., a joint venture between the state oil company National Oil Corp., Hess Corp., Marathon Oil Corp. and ConocoPhillips, is now suspended as key ports have been closed for almost a week, according to a person familiar with the situation, who asked not to be identified because of a lack of […]

Libya’s Waha Oil May Halt Production as Clashes Keep Ports Shut

9 Mar 2017   Libya

Production from Waha Oil Co., a venture between Libya’s state oil company and foreign partners, may be suspended Wednesday as clashes in the country’s eastern oil region keep the main export terminals out of service. “Output from Waha Oil Co. continues to be reduced and may reach a complete halt within coming hours,” Jadalla Alaokali, a board member at National Oil Corp., said by phone. The Petroleum Facilities Guard, a United Nations-backed force, said Tuesday it took control of oil installations at Es Sider and Ras Lanuf, the country’s largest and third-largest oil ports, following their seizure by the Benghazi Defense Brigades militia in early March. The ports had previously been controlled by eastern-based military commander Khalifa Haftar. Libya’s total crude output remains stable at 671,000 barrels a day as increases in production from other companies, including Arabian Gulf Oil Co., have countered the decline from Waha’s fields, according […]

Oil pulled higher by Libyan unrest

8 Mar 2017   Libya, Prices

Oil prices moved higher early Tuesday morning as threats to Libyan security balanced against reports that U.S. oil production gains could slow momentum. NATO allies expressed concern that fighting in and around the main oil installations in Libya was a sign that unity was again under threat. Libya is a member of the Organization of Petroleum Exporting Countries that’s exempt from a group-wide production ceiling, though fighting has led to output cuts of around 37,000 barrels per day, or about 5 percent of total production based on January data. Libyan woes added to a complicated narrative for the oil markets so far this year. Crude oil prices have settled at around $55 per barrel since OPEC agreed to limit […]

NATO allies fret over security of Libya’s oil

8 Mar 2017   Libya

The escalation of violence in and around the oil installations of Libya are cause for growing international concern, a joint statement from NATO allies said. A joint statement from the French, British and U.S. ambassadors to Libya voiced strong condemnation over the escalation of violence that threatens Libyan oil and the associated infrastructure. Libya’s political and national security situation has oscillated between near-collapse and near-recovery since the fall of the regime of Moammar Gadhafi after civil war erupted during the Arab Spring democratic uprisings that began in 2011. Once a main contributor to the Organization of Petroleum Exporting Countries, the nation’s oil wealth has been in the crosshairs of the fight for post-Gadhafi control over Libya. A report Monday in the Libya Herald cited […]

Libya Crude Output Edges Higher After Clashes at Main Oil Ports

8 Mar 2017   Libya

Libya’s crude production made a partial recovery after clashes between rival armed groups led to a halt in shipments from two of the OPEC member’s biggest oil ports. Output rose on Tuesday to 673,200 barrels a day from 663,000 the previous day, said Jadalla Alaokali, a board member of Libya’s National Oil Corp. The increase came from oil fields operated by Arabian Gulf Oil Co., an NOC unit known as Agoco, which had curtailed production in recent days due to security concerns, he said by phone. Output should rise further in coming weeks with oil from the Abu Attifel field operated by Mellitah Oil & Gas Co., he said. The Benghazi Defense Brigades, a militia group, captured the ports of Es Sider and Ras Lanuf in an offensive that began on March 3. The ports had been under the control of eastern-based military commander Khalifa Haftar. The Brigades are ready to hand the ports over to the NOC, Mustafa Al-Sharkasi, the group’s leader, said in remarks broadcast Monday by local AlNabaa TV.

The clashes at Es Sider, Libya’s biggest oil port, and Ras Lanuf, its third-largest, jeopardize recent gains in Libya’s oil production. Exports had resumed from Es Sider and other facilities that were previously blockaded amid fighting in the country, which has Africa’s largest crude reserves. Production in February was almost double the level of the previous year, data compiled by Bloomberg show.

Libya Oil Output Falls as Fresh Clashes Force Ports to Shut

7 Mar 2017   Libya

Libya’s crude output dropped after clashes forced two of the country’s biggest oil ports to shut down, threatening the OPEC member’s efforts to revive the production of its most important commodity. The North African country’s production fell to 650,000 barrels a day from about 700,000 barrels a few days ago, according to a person with knowledge of the matter, who asked not to be identified because the person isn’t authorized to speak to media. Crude shipments from Es Sider, the nation’s largest oil port, and Ras Lanuf, its third-biggest, have been suspended until security improves and workers return to the facilities, Jadalla Alaokali, a board member of Libya’s National Oil Corp., said by phone. Production from fields feeding the ports has declined and may be cut further if the two terminals remain shut and the situation doesn’t improve soon, he said. The Benghazi Defense Brigades, a militia not allied […]

Libya militias who seized oil terminals aim to take Benghazi

7 Mar 2017   Libya

Libyan militias that occupied two key oil terminals last week said Monday they intend to take the eastern city of Benghazi and unseat Field Marshal Khalifa Hifter, who controls the area.  Col. Mustafa Alsharksi, leader of the so-called Benghazi Defense Brigades, said more than 3,000 men are poised to continue eastward now that they have taken over the oil terminals of al-Sidra and Ras Lanuf.  The move threatens to escalate the conflict between Libya’s two competing parliaments and governments, each backed by a set of militias, tribes and political factions, and potentially damage the contested oil installations.

“Our main goal is to return our city,” Alsharksi said at a news conference in Misrata. “Our main goal is to reject and say no to oppression, say no to military rule (of Hifter),”  The militias are comprised of Islamic militants and former rebels recently defeated by Hifter’s forces in Benghazi, Libya’s second largest city. They were joined by militiamen from the western city of Misrata.  Alsharksi, who described Hifter as a “criminal,” said his forces will continue to ensure oil revenues go to the U.N.-backed government in Tripoli.  The Hifter-allied army units say they have deployed more forces in preparation for a counterattack to drive out the militias, describing the militias’ recent advances as “a war against a whole region” that “they will not win.”

Fighting for Libya’s Oil Raises Questions Over Eastern Strongman

7 Mar 2017   Libya

Libya’s slow-burn conflict swept into two of its most important oil facilities late last week, shutting ports and triggering a drop in crude output in the OPEC nation. The attacks in the oil crescent were a setback to a military commander based in Libya’s east who wants — with the help of allies including Russia and Egypt — to expand his influence all the way to the capital, Tripoli. Here’s a look at why they matter for a country that has collapsed into fiefdoms since the ouster of Muammar Qaddafi. Who’s fighting whom? The offensive on Es Sider, Libya’s largest export terminal for oil, and Ras Lanuf, its biggest refinery, began March 3 and was led by the Benghazi Defense Brigades. The militia is mainly composed of Islamist-leaning rebels and former army […]

Libya’s Biggest Oil Port Seized in Blow to Production Surge

6 Mar 2017   Libya

Libya’s biggest oil port was seized by an armed group, dealing a blow to the North African country as it seeks to revive production of its most important commodity. Brent crude futures climbed. The Benghazi Defense Brigades, a militia that’s not allied to the United Nations-backed government in Tripoli, took control of the Es Sider terminal on Friday afternoon, according to people with knowledge of matter who asked not to be identified because they aren’t authorized to speak to the media. The facility had previously been under the control of eastern-based military commander Khalifa Haftar. “That is a considerable blow to Haftar,” said Mattia Toaldo, senior policy fellow at the European Council on Foreign Relations. “We have to see if there is an immediate impact on exports. But for confidence in Libya’s production it’s a blow.” The clashes show just how vulnerable Libya’s recent oil-production surge is to conflict […]

Libya Oil Output Falls as Fresh Clashes Force Ports to Shut

6 Mar 2017   Libya

Libya’s crude output dropped after clashes forced two of the country’s biggest oil ports to shut down, threatening the OPEC member’s efforts to revive the production of its most important commodity. The North African country’s production fell to 650,000 barrels a day from about 700,000 barrels a few days ago, according to a person with knowledge of the matter, who asked not to be identified because the person isn’t authorized to speak to media. Crude shipments from Es Sider, the nation’s largest oil port, and Ras Lanuf, its third-biggest, have been suspended until security improves and workers return to the facilities, Jadalla Alaokali, a board member of Libya’s National Oil Corp., said by phone. Production from fields feeding the ports has declined and may be cut further if the two terminals remain shut and the situation doesn’t improve soon, he said. The Benghazi Defense Brigades, a militia not allied […]

Armed faction enters major Libyan oil port

4 Mar 2017   Libya

An armed faction entered a major Libyan oil terminal and a nearby airport on Friday, after attacking forces that have controlled the terminals since September, officials and residents said. The terminals at Es Sider and Ras Lanuf are two of Libya’s largest, with potential combined production capacity of about 600,000 barrels per day (bpd). The new uncertainty over their status could be a blow to Libya’s hopes of further reviving its oil production. It was unclear who controlled the ports late on Friday. There was no statement from the Libyan National Oil Corporation (NOC) in Tripoli, which reopened the ports after the eastern-based Libyan National Army (LNA) took them over seven months ago. Since then the LNA’s opponents have launched several unsuccessful attacks against the ports in Libya’s eastern […]

Libya’s Biggest Oil Port Seized in Blow to Production Surge

4 Mar 2017   Libya

Libya’s biggest oil port was seized by an armed group, dealing a blow to the North African country as it seeks to revive production of its most important commodity. Brent crude futures climbed. The Benghazi Defense Brigades, a militia that’s not allied to the United Nations-backed government in Tripoli, took control of the Es Sider terminal on Friday afternoon, according to people with knowledge of matter who asked not to be identified because they aren’t authorized to speak to the media. The facility had previously been under the control of eastern-based military commander Khalifa Haftar. “That is a considerable blow to Haftar,” said Mattia Toaldo, senior policy fellow at the European Council on Foreign Relations. “We have to see if there is an immediate impact on exports. But for confidence in Libya’s production it’s a blow.” The clashes show just how vulnerable Libya’s recent oil-production surge is to conflict […]

Libya signs deal with Russia’s Rosneft

22 Feb 2017   Libya

An agreement with Russian oil company Rosneft helps lay a foundation for the recovering oil sector in Libya, Libya’s top oil producer said. Meeting on the sidelines of an international energy conference in London, the head of the National Oil Corp. of Libya met with Rosneft Chairman Igor Sechin to lay the groundwork for investments in the Libyan oil sector. “This agreement with Russia’s largest oil company lays the foundations for us jointly to identify areas of cooperation,” NOC Chairman Mustafa Sanalla said in a statement . “Working with NOC, Rosneft and Russia can play an important and constructive role in Libya.” Libya’s oil sector is recovering following years of civil war that followed the downfall of the regime of Moammar Gadhafi […]

Rosneft Expands in Middle East With Libya and Iraq Oil Deals

22 Feb 2017   Iraq, Libya, Russia

Rosneft PJSC , the state-run producer headed by a close adviser of Russian President Vladimir Putin, is expanding its footprint in the Middle East by striking new oil deals with Iraq’s Kurdish region and Libya. Russia’s largest oil producer agreed to buy crude from Libya’s National Oil Corp., the state-run NOC said Tuesday on its website, without specifying the amount. The deal also provides for Rosneft to invest in exploration and production in the North African country. The Russian company announced on the same day it will buy Kurdish oil until 2019 and will study exploration and production opportunities in Kurdish areas, it said in a statement. “These deals combine potentially good economics for Rosneft and good politics for the Kremlin,” Chris Weafer, a partner at Macro Advisory in Moscow, said Tuesday by e-mail. “Expect more deals from Rosneft in the Middle East and North Africa and across the […]

As Haftar Moves Closer To Russia, Will Libya Become The Next Syria?

22 Feb 2017   Libya

Libya’s returning oil wealth could bring back cheap fuel, food and foreign goods in a subsidy-based system in the most optimistic scenario. But as oil prices and production rise, the future of new political developments hangs in the balance in a growing power struggle between Russia and the United Nations. Last week, the U.N.-backed Government of National Accord (GNA) in Libya announced plans to reshuffle its leadership, which it hoped would be a way to bring influential General Khalifa Haftar—the GNA’s key rival—into the Tripoli-based organization’s ranks. Cairo hosted members of both parties to discuss cooperation between Haftar’s House of Representatives/Libyan National Army based in Tobruk and the GNA – which vowed a “180 degree turn” in relations if Haftar agreed to take a role within its hierarchy. But the meeting never happened. Egyptian President Abdel Fattah el-Sisi could not convince Haftar to accept a position within the GNA’s […]

Libya Crude Output Rises as Work Conditions for Big Oil Improve

16 Feb 2017   Libya

Libya’s crude production exceeded 700,000 barrels a day and is due to keep rising as working conditions in the conflict-ridden country improved for international companies like Eni SpA and Total SA , an official from the state oil company said. The North African country’s crude production is due to reach 1.2 million barrels a day by August and 1.7 million by March 2018 when the nation’s ports and export terminals will be operating at full capacity, Jadalla Alaokali, board member of Libya’s National Oil Corp., said in an interview in Cairo. Output at the El Feel, or Elephant, oil field is due to resume within one month, pumping 75,000 barrels a day, he said. Eni and Total are working in Libya without difficulty and Schlumberger Ltd . resumed operations in the country about three months ago, he said. Eni is due to start production from an offshore area in […]

Mafia, Guns And Clans: The Big Libyan Oil Heist

13 Feb 2017   Libya

Libya’s oil production problems extend far beyond whether the forces of Tripoli or Benghazi secure ultimate control over the country: Clan-based militias are running their own smuggling operations, and their mafia reach is said to extend as far as the Coast Guard—and even into Europe. This smuggled oil is making its way into Europe, and Libya authorities say it has cost the state US$360 million so far, at a time when the country is producing only 715,000 barrels per day , down from its Ghaddafi heydays of 1.6 million bpd. The post-Ghaddafi chaos has created some great business opportunities in both human trafficking and oil smuggling. According to a stellar and rare (these days) piece of investigative reporting by Italian journalist Frecesca Mannocchi, the western coastal strip of Libya running from Zawya to Sabratha is a smuggler’s paradise, with the local police and coast guard complicit in lucrative oil […]

Trading giant Glencore extends major Libyan oil deal: sources

6 Feb 2017   Libya

Swiss-based commodities giant Glencore has extended a deal with Libya’s state oil firm to be the sole marketer of one third of the country’s current crude oil production, sources familiar with the matter said. It was not clear for how long Glencore would continue to have exclusivity over the output and whether some parts of the deal would be renegotiated. The deal extends Glencore’s dominance over rivals such as Vitol and Trafigura in handling barrels from the North African country for a second year running. A spokesman for Glencore declined to comment. Officials at Libya’s state-owned National Oil Corp. (NOC) also declined to comment. Libya has struggled for years to end a crippling blockade of its oil ports amid a civil war and Islamic State intrusions. Between security fears […]

Libya’s oil sector may be opening to foreigners

26 Jan 2017   Libya

Libya plans to start opening the doors to foreign investors that may be ready to step back into the country’s oil sector, a national oil company announced. Mustafa Sanalla, the chairman of the Libyan National Oil Corp., said all major export arteries out of the country are open following at least three years of conflict-linked blockades. Speaking at a conference in London, the chairman said it was now time to open the country up for foreign investments. “We intend in the coming months to lift our self-imposed moratorium since 2011 on foreign investment in new projects to achieve the best national interest for the Libyan oil sector and for Libya as a state,” he said. Libya is exempt from a managed decline agreement organized […]

Libya’s Oil Output Is at Three-Year High and Rising

25 Jan 2017   Libya

OPEC Cuts Won’t Debt Global Inventories Libya is pumping 715,000 barrels a day of oil, the most since 2014, and is on track to keep boosting output this year as the country restores much of the production lost amid political chaos and conflict, the state oil company’s chairman said. Blockades at the North African state’s main oil ports have ended, and output may reach 1.25 million barrels a day by year end of 2017, National Oil Corp. Chairman Mustafa Sanalla said Tuesday at a conference in London. Additional production may create a challenge for OPEC and other major suppliers that agreed to pump less crude starting Jan. 1 in an effort to end a global glut. “Every single major oil-export route is now open, although some are operating at significantly reduced levels due to damage suffered in conflicts,” Sanalla said, according to the text of his speech. “For […]

Libya Says Oil Sector Open Again for Business

25 Jan 2017   Libya

Libya intends to reopen its oil sector to new foreign investments, its state-run oil company’s chief said Tuesday, a move that would give oil companies the opportunity to develop the largest petroleum reserves in Africa for the first time in five years. Libya froze all new foreign investment in 2011 after the civil war that toppled strongman Moammar Gadhafi. International oil companies such as Total SA of France and ConocoPhillips have long had operations in Libya, and Eni SpA of Italy has found ways to keep…

Is Libya A Bigger Threat To Oil Prices Than U.S. Shale?

25 Jan 2017   Libya

Despite some suggestions that oil prices will level off at around $60 in 2017, since the initial surge of the OPEC production deal prices have barely nudged above $53. Over the long-term, outlooks are more bearish than bullish, and a major reason for that is the strong likelihood of increased production in three places: Libya, Nigeria and Iran. All three countries were effectively exempt from the OPEC production cuts, for various reasons. Iran has agreed to keep its production level below 4 million bpd, allowing it to add about 90,000 bpd to its production level. Nigeria has suffered significant cuts to production over the last year, chiefly due to the activities of militants in the Niger River Delta. Libya has been torn apart by civil war and a fight between its recognized government and separatists in its eastern regions, with the country’s rich oil fields and refineries the major […]

60,000 Bpd Offline In Libya After Technical Malfunction

24 Jan 2017   Libya

After an electrical failure at the Sarir oilfield caused by a fire at a substation, Libya’s oil production has fallen by 60,000 barrels per day , National Oil Corp. head Mustafa Sanalla said on Monday. The authorities have not yet offered any details as to when the production will be back online, or how much damage was caused by the fire. Prior to the malfunction, production was about 700,000 barrels per day at of the start of January, and Libya is eyeing a production of 900,000 barrels per day within the next few months and 1 million barrels per day by the end of this year. Libya has managed to more than double its crude oil output from 300,000 bpd in September, thanks to the reopening of oil ports in the Oil Crescent, which were held for nearly two years and used as bargaining chips by the Petroleum Forces […]

Libya Ramps Up Oil Production, Threatening OPEC Plans

11 Jan 2017   Libya

Libya’s crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries’ plans to raise petroleum prices by collectively lowering output. Oil prices have surged 19% to more than $55 a barrel since OPEC’s Nov. 30 deal to throttle down its output by about 4%, but the surge in Libyan production challenges a bet the cartel made against the North African country. OPEC exempted Libya from any requirement to cut because the country has been riven by…

Libya To Re-Open Last Major Oil Export Terminal

6 Jan 2017   Libya

Libya is about to re-open the last major oil terminal that has been shut due to factions fighting in a move that would allow it to further increase oil exports, potentially putting pressure on oil prices and on fellow OPEC members that have just started cutting output in a bid to stabilize prices and speed up the drawdown of the inventory glut. Libya’s Zawiya export terminal is getting ready to restart its exports after the pipeline carrying crude to it was re-opened, Bloomberg reports, quoting an official at the National Oil Corporation (NOC). The imminent re-opening of the Zawiya export terminal means that all nine major oil ports in the country will be shipping oil. At the end of December, the NOC said that the pipelines connecting the Sharara oil field to Zawiya refinery, and the El-Feel (Elephant) oil field to the Mellitah complex, had been re-opened. The Sharara […]

Libya Oil-Export Terminal Said to Re-Open as Output Rises

5 Jan 2017   Libya

Libya is re-opening its last major oil-export terminal that shut amid the conflict hobbling output in the country with Africa’s largest crude reserves. The Zawiya terminal is preparing to resume exports after the pipeline supplying it was re-opened, an official at the state-run National Oil Corp. said Wednesday, asking not to be identified for lack of authorization to speak to news media. With Zawiya shipping, all nine of Libya’s main oil ports would be exporting. The country is revving up its oil industry just as most of its OPEC peers are cutting production to counter a glut. Libya currently pumps 700,000 barrels a day of oil, the NOC official said. That’s up from 580,000 barrels a day in November and 520,000 in October, data compiled by Bloomberg show. The North African country plans to almost double output in 2017. Last month it re-opened two of its biggest oil fields […]

Libya’s Oil Revival Gathers Pace to Highlight Risks on OPEC Deal

4 Jan 2017   Libya

Libya, the holder of Africa’s biggest crude reserves, is ramping up output from its biggest oil field again after two years of internal conflict, the latest reminder of just how vulnerable OPEC’s quest to clear a global crude glut might be. The Sharara deposit in the Libya’s south west will ship almost 1.9 million barrels this month from its Zawiya port near Tripoli, according to a loading program obtained by Bloomberg. That compares with a pumping rate from the field of almost 9 million barrels a month as recently as late 2014, before internal conflict halted flows. So far Libya’s revival has done little to undermine a plan by the Organization of Petroleum Exporting Countries to prop up prices by restricting oil supply. The group said Nov. 30 it would curb almost 1.2 million barrels a day but that several nations — Libya among them — didn’t have to […]

Operations resuming at Libya’s Sharara oil field after pipeline reopens: field official

22 Dec 2016   Libya

Operations at the major Libyan oilfield of Sharara were gradually resuming on Wednesday after the lifting of a two-year blockade on a pipeline leading from the field, a senior official said on Wednesday. Libya’s National Oil Corporation (NOC) confirmed on Tuesday that pipelines leading from Sharara and El Feel fields had reopened, saying it hoped to add 270,000 barrels per day (bpd) to national production over the next three months. The production capacity of Sharara is about 330,000 bpd, and El Feel around 90,000 bpd, according to the NOC. “We started running the wells and then gradually we will start pumping to the Zawiya refinery,” the official, who works at the field, told Reuters on condition of anonymity. “The process will start normally this evening or tomorrow, once we make sure that everything is stable, since the […]

Libya National Oil Co. Says Pipelines Reopened in the Country’s West

21 Dec 2016   Libya

Libya’s National Oil Company said Tuesday long shuttered pipelines had reopened in the country’s west that could supply 270,000 barrels a day of crude oil in the next three months—almost half its current output. The new production, if sustained, would be a boost for Libya as it tries to reboot its oil industry following years of strife in the wake of the 2011 ouster and death of dictator Moammar Gadhafi. Its production fell from a peak of over 1.6 million barrels a day to less than 300,000 barrels a day at points this year. Pumped-up Libyan output would also complicate efforts to raise oil prices by the Organization of the Petroleum Exporting Countries, the 13-nation cartel that counts Libya as a member. The group pledged to trim its output by 1.2 million barrels a day, but exempted Libya and Nigeria from any obligations because their production had been disrupted […]

Libya Reopens Oil Fields as Biggest Terminal Is Set to Load

21 Dec 2016   Libya

Libya reopened two of its biggest oil fields and is set to load its first crude cargo in two years from its largest export terminal as the war-torn country pursues plans to almost double output in 2017. Pipelines connecting the Sharara oil field to Zawiya refinery, and the El-Feel deposit to the Mellitah energy complex, reopened at the town of Rayayina, according to a statement by the state-run National Oil Corp. The reopening of the fields will help boost the country’s oil production by 175,000 barrels a day within one month and 270,000 barrels a day within three months, it said. Also, a tanker is set to load the first export from Es Sider oil port since the terminal was closed in 2014. “I welcome the statement by the Rayayina Patrols Company of the Petroleum Facilities Guard, Western Branch, announcing lifting of the blockade on all the pipelines,” NOC […]

Why Oil Markets Don’t Have To Worry About Libya

21 Dec 2016   Libya

In the wake of recent developments, Libya’s National Oil Corporation now has full control over all its oilfields and export terminals. After the recapture of the Eastern region export terminals by the Libyan National Army (LNA) last September, and the recent announcement by the Petroleum Facilities Guard (PFG) to reopen the Al-Ryayna oil pipeline, the oil markets responded with concern. Fears were raised over the impact of Libya’s potential output increase on the global supply glut, and whether Libya’s possible production rise would offset the effect of the recently announced OPEC and non-OPEC output cuts. After all, Libya now has, theoretically, an additional capacity of around 1.1 mbpd, which could, combined with an increase in Nigeria’s production, disarm the global cut deal, and hamper its effect on oil prices and the supply and demand rebalance. However, examining Libya’s current oil industry situation and the political landscape closely may lead […]

Oil Extends Advance Above $52 as Libyan Output Comeback Stalls

20 Dec 2016   Libya, Prices

Oil extended gains above $52 a barrel as a planned production boost from Libya stalled amid continuing tension in the OPEC member that’s exempt from output cuts. Futures climbed as much as 1.2 percent in New York after rising 2 percent on Friday. Libyan oil-facility guards backtracked on an agreement to allow supply to flow from the El Feel and Sharara fields, two of the country’s biggest, according to an engineer that operates El Feel. Money managers increased their net-long positions in West Texas Intermediate crude to the highest since July 2014, U.S. Commodity Futures Trading Commission data showed. Oil has traded near $50 a barrel since the Organization of Petroleum Exporting Countries agreed Nov. 30 to reduce production for the first time in eight years. Goldman Sachs Group Inc. last week increased its second-quarter crude-price forecasts and predicted stockpiles would return to normal by mid-2017 amid the curbs, […]

Tanker docks at Libya’s Es Sider port to load first crude cargo in two years: officials

20 Dec 2016   Libya

An oil tanker docked at the east Libyan port of Es Sider on Monday to load the first cargo of crude since the terminal reopened following a two-year closure, port officials said. Es Sider, Libya’s biggest export terminal, had been shut due to a blockade by a military faction since 2014. It reopened in mid September, but repairs were needed before tankers could load at the port, and its capacity remains far below its pre-conflict level of 350,000 barrels per day (bpd). Es Sider is one of four ports seized in September by forces loyal to east Libyan commander Khalifa Haftar, which allowed Libya’s National Oil Corporation (NOC) to reopen them, doubling national production to about 600,000 barrels per day (bpd). Libya’s oil production has been slashed by political […]

Libya’s ‘Elephant,’ Sharara Oil Fields Restart Said Halted

19 Dec 2016   Libya

Libyan oil-facility guards prevented two of the country’s biggest fields from resuming production, days after the National Oil Corp. reached an agreement to restart operations there to boost output in the politically divided OPEC state. The El Feel, or Elephant, and Sharara fields still aren’t operational after they were shut more than a year and a half ago, an NOC official said Sunday by phone, asking not to be identified for lack of authorization to speak to news media. A group of guards backtracked on their agreement to let oil flow by pipeline from both fields, Khaled Hadloul, an engineer at Mellitah Oil & Gas, which operates Elephant, said by phone. “It’s not clear when the actual output will start,” Hadloul said. “Negotiations with the guards are ongoing,” and the reasons why the guards reversed their position are unclear, he said. Hadloul said he knew that Repsol SA -operated […]

Libya Halts Relaunch of Oil Production at Western Fields

19 Dec 2016   Libya

Libya’s National Oil Co. has for now stopped the relaunch of production at oil fields in the country’s west, Libyan officials said Sunday, after a militia threatened to block the petroleum from reaching the market. The aborted restart is a blow for Libya’s oil industry, which has been counting on the country’s big western fields to kick-start its comeback. A pipeline that can transport over 400,000 barrels a day from two western fields had partly reopened on Wednesday , but efforts to send that oil to coastal ports are now off, oil officials said. Oil traders are closely watching Libyan output. The country is a member of the Organization of the Petroleum Exporting Countries, but it was exempted from the cartel’s recent deal to cut production because its output has been disrupted in […]

Oil Eases Off Highs on Libyan Production

17 Dec 2016   Libya, Prices

Oil prices were steady Friday, under pressure from potential production increases in Libya where operations have restarted at two key oil fields. Brent crude, the global oil benchmark, edged down 0.2% to $53.91 a barrel on London’s ICE Futures exchange, having hit their highest level since July 2015 earlier this week. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.3% at $50.73 a barrel. Libya’s oil production has dropped steeply in the past five years after the ousting of Moammar Gadhafi in 2011, but in recent months it has been ramping back up. Earlier this week Libyan officials said the restarting of the oil fields and a connected pipeline could bring back more than 200,000 barrels a day of oil within days. This would diminish the impact of the recent production cuts agreed by the Organization of the Petroleum Exporting Countries, as well as […]

Libya’s Biggest Oil Port, Field Said Poised to Reopen This Week

16 Dec 2016   Libya

Libya is preparing this week to reopen two of its biggest oil fields and ship the first cargo from its largest export terminal in two years, as the war-torn OPEC state pursues plans to almost double crude output in 2017. Repsol SA-operated Sharara, Libya’s largest oil field, and the El Feel, or Elephant, deposit run by Eni SpA will soon start pumping crude to the Zawiya refinery and the Mellitah energy complex after pipelines reopened Wednesday, Mansur Abdullah, manager of the refinery’s oil movement, said by phone. The two western fields have been closed for more than a year and a half and have a combined output capacity of more than 450,000 barrels a day. The tanker Seamusic is scheduled to arrive at the port of Es Sider on Friday to take on the first crude for overseas shipment […]

Libya’s Biggest Oil Port, Field Said Poised to Reopen This Week

15 Dec 2016   Libya

Libya is preparing this week to reopen two of its biggest oil fields and ship the first cargo from its largest export terminal in two years, as the war-torn OPEC state pursues plans to almost double crude output in 2017. Repsol SA-operated Sharara, Libya’s largest oil field, and the El Feel, or Elephant, deposit run by Eni SpA will soon start pumping crude to the Zawiya refinery and the Mellitah energy complex after pipelines reopened Wednesday, Mansur Abdullah, manager of the refinery’s oil movement, said by phone. The two western fields have been closed for more than a year and a half and have a combined output capacity of more than 450,000 barrels a day. The tanker Seamusic is scheduled to arrive at the port of Es Sider on Friday to take on the first crude for overseas shipment […]

Libya Restarts Operations at Key Western Oil Fields

15 Dec 2016   Libya

Shown, the El Sharara oil field in Libya in December 2014, where production has yet… Operations have restarted at two key oil fields and a connected pipeline in Western Libya that have been shut down for over two years, Libyan officials said, following an agreement with local tribes. A pipeline that can transport over 400,000 barrels a day of oil from two connected fields has partly reopened, the officials said. If successful, the pipeline’s reopening could bring back more than 200,000 barrels a day of oil within days, one of the officials said. The potential return to the market of hundreds of thousands of barrels of Libyan crude comes just as oil prices have rallied on the promise of production cuts by members of the Organization of the Petroleum Exporting Countries and other major producers. An increase in Libyan output of 400,000 barrels a day would almost completely make […]