Libya

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 – UPI.com

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 […]

Qatar Spat Spills Over To Libya’s Oil, Rekindles Political Divides

15 Jun 2017   Libya, Qatar

Just as Libya’s National Oil Corporation (NOC) is targeting to raise crude oil output to 1 million bpd by the end of July, the rivaling factions in the east and west of the country have entered into a fresh dispute over Libya’s crude oil sales after several Arab states cut ties with Qatar last week. In the east, the military commander is supported by Saudi Arabia, the United Arab Emirates (UAE), and Egypt—three of the Arab states that severed ties with Qatar, accusing it of sponsoring terrorism and destabilizing the region. According to Bloomberg, the chairman of the eastern NOC in Libya, Nagi al-Maghrabi, has accused Qatar of using its 8.5-percent stake in commodity trader Glencore to control the Swiss trader’s sales of Libyan crude oil. Authorities in eastern Libya have threatened to block Glencore operations, which could potentially reduce (again) Libya’s output and threaten its tentative recovery. Earlier […]

Libya’s Largest Oil Field Resumes Production

10 Jun 2017   Libya

Libya’s largest oil field, El Sharara, has resumed production after workers had shuttered the 270,000-bpd field on Wednesday, protesting over the lack of medical treatment for a co-worker who had died in an accident in a swimming pool at the field. According to a statement by Libya’s National Oil Corporation (NOC), Sharara resumed production which is expected to return to its usual output within three days. The workers’ protest shuttered Sharara production on Wednesday, and before the strike, Libya was producing 827,000 bpd, the highest level since October 2014. The resumption of Sharara production followed an emergency meeting on Thursday between NOC’s board of directors and the company operating Sharara, Akakus Oil Operations Company, in which NOC chairman Mustafa Sanalla ordered the company to verify the ambulance services conditions and upgrade the medical services for employees. At that meeting, Sanalla said that he sympathized with the workers, but “the […]

Oil Bears Can’t Count on Libya as Expat Exodus Hinders Recovery

5 Jun 2017   Libya

Output won’t rise much above 1 million barrels a day: WoodMac OMV says security must improve before it can send expats back The rapid increase in Libya’s oil production is heading toward a hard ceiling. Crude output in the politically fragmented country has more than doubled in the past year to exceed 800,000 barrels a day, according to the state-run National Oil Corp., as fighting and labor unrest at ports and fields have subsided. But with foreign staff of international companies staying away, analysts from Energy Aspects Ltd. to Wood Mackenzie Ltd. say Libya’s ability to pump more oil will soon reach a limit — and won’t be enough to upset an oversupplied market. “You’ve got a cumulative buildup of technical issues, shortages of equipment, and increasingly reports of damage to facilities,” Richard Mallinson of London-based Energy Aspects said by phone. The North African country will struggle to push […]

Libya’s Biggest Oil Field Boosts Production, Raising the Country’s Output

1 Jun 2017   Libya

Sharara field production said to rise 25,000 barrels a day North African nation output at highest since October 2014 Libya’s biggest oil field boosted production, allowing the OPEC nation to pump crude at the highest level since October 2014. Crude from Sharara field rose by 25,000 barrels a day to 250,000 barrels, according to a person with direct knowledge of the matter who asked not to be identified because they aren’t authorized to speak to the media. Libya’s output rose to 827,000 barrels a day after the increase in output from Sharara, Mustafa Sanalla, head of the state-run National Oil Corp., said in a text message. The revival in Libyan crude production comes after the Organization of Petroleum Exporting Countries and allied suppliers agreed on May 25 to extend a deal to cut production to battle a global oversupply until the end of March. The recent increase in Libyan […]

Libyan oil production has potential to cross 1 million barrels per day

11 May 2017   Libya

Libya has the technical potential to produce as much as 1.2 million barrels of oil per day, though commercial and security issues interfere, an oil leader said. Mustafa Sanalla, the chairman of the Libyan National Oil Corp. said the current crude oil production rate of 800,000 barrels per day is the best output since 2014. Libya is exempt from an agreement coordinated by the Organization of Petroleum Exporting Countries to balance the market through managed production declines and the chairman said national security issues and contractual disputes with European partners were impeding further growth. “There are no technical reasons for the loss of production,” he said in a statement . “We are able produce an average of 1.1 million […]

Libya’s Oil Output Tops 800,000 Bpd For The First Time Since 2014

11 May 2017   Libya

Libya’s crude oil production has exceeded 800,000 bpd for the first time since 2014, and could average up to 1.2 million bpd for the rest of this year if oil flows freely, National Oil Corporation (NOC) chairman Mustafa Sanalla said on Wednesday in a statement that could fuel more fears of rising global supply. Just yesterday, reports suggested that Libya’s output had reached 780,000 bpd . Furthermore, a commercial dispute between Libya and Germany’s Wintershall had shut in more than 160,000 bpd of output, costing the country nearly US$250 million monthly, Sanalla said. “ 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. According to a Sanalla statement sent to The Wall Street Journal, the dispute between Wintershall and NOC is over liabilities that Wintershall owes to Libya dating back to […]

Libya Adds to OPEC’s Burden as Output Reaches Highest Since 2014

10 May 2017   Libya

Output at about 780,000 barrels a day on Sharara field boost Global producers signal extension in cuts amid oil price slump Libya is pumping the most oil since October 2014 as the OPEC member restores output amid progress in mending the nation’s political divisions. The increase adds pressure on the world’s biggest producers who just signaled they may extend production cuts amid a slump in oil. The North African country’s production has reached about 780,000 barrels a day, according to a person familiar with the situation who asked not to be identified for lack of authorization to speak to the media. Libya was producing about 700,000 barrels a day at the end of April, Jadalla Alaokali, a board member at state producer the National Oil Corp., said then. A revival in Libyan output adds to the challenge that the Organization of Petroleum Exporting Countries and other major producers face […]

Libya Adds to OPEC’s Burden as Output Reaches Highest Since 2014

9 May 2017   Libya

Output at about 780,000 barrels a day on Sharara field boost Global producers signal extension in cuts amid oil price slump Libya is pumping the most oil since October 2014 as the OPEC member restores output amid progress in mending the nation’s political divisions. The increase adds pressure on the world’s biggest producers who just signaled they may extend production cuts amid a slump in oil. The North African country’s production has reached about 780,000 barrels a day, according to a person familiar with the situation who asked not to be identified for lack of authorization to speak to the media. Libya was producing about 700,000 barrels a day at the end of April, Jadalla Alaokali, a board member at state producer the National Oil Corp., said then. A revival in Libyan output adds to the challenge that the Organization of Petroleum Exporting Countries and other major producers face […]

Libya Adds to OPEC’s Burden as Output Reaches Highest Since 2014

9 May 2017   Libya

Output at about 780,000 barrels a day on Sharara field boost Global producers signal extension in cuts amid oil price slump Libya is pumping the most oil since October 2014 as the OPEC member restores output amid progress in mending the nation’s political divisions. The increase adds pressure on the world’s biggest producers who just signaled they may extend production cuts amid a slump in oil. The North African country’s production has reached about 780,000 barrels a day, according to a person familiar with the situation who asked not to be identified for lack of authorization to speak to the media. Libya was producing about 700,000 barrels a day at the end of April, Jadalla Alaokali, a board member at state producer the National Oil Corp., said then. A revival in Libyan output adds to the challenge that the Organization of Petroleum Exporting Countries and other major producers face […]

Stability In Libya To Start An Oil Race

5 May 2017   Libya

Libya’s ongoing civil war, which has resulted in a hothouse environment for extremists, Da’esh supporters and regional coalitions, could be heading to a slowdown in activity. Arab media sources claim that the two main adversaries, Libyan general Khalifa Haftar, currently ruling the east of the country via the Libyan national army (LNA), and UN-backed Fayez Al Serraj, Head of the Presidential Council, have reached an initial agreement to cooperate. During a meeting in Abu Dhabi, both parties seem to have agreed to form communication channels between the PC and the Operation Dignity (which was described by Haftar as the Libyan national army). At the same time, Al Serraj en Haftar has agreed that the general will be nominated for president of Libya in March 2018. Such an agreement would be a major success, not only for the two Libyan factions but especially for the main power brokers, Egypt and […]

Oil Politics Driving Libya Closer To Failure

3 May 2017   Libya

A rift has opened between Libya’s U.N.-backed government and its powerful National Oil Corporation (NOC), threatening the fractured country’s political cohesion and its nascent petroleum-industry recovery. On Monday, NOC Chairman Mustafa Sanalla announced that the country has built its oil production up to 760,000 barrels per day and planned to go ahead with plans to expand production to 1.1 million bpd by August of this year. Just a few days earlier, that same official openly criticized Libya’s Government of National Accord (GNA), a United Nations-backed government whose formation last year raised hopes of political unity in a nation divided by warring militant groups. Sanalla said the GNA aimed to wrest control of NOC’s petroleum deals for power over Libya’s economic future. Oil profits will be the lifeblood of any successful future government in Libya. Under Gaddafi’s reign, fossil fuels made up over 90 percent of Tripoli’s revenues, which the […]

Libya’s oil output hits 760,000 bpd, highest since 2014: NOC

2 May 2017   Libya

Libya’s oil production has risen above 760,000 barrels per day (bpd), its highest since December 2014, the National Oil Corporation (NOC) said on Monday. Chairman Mustafa Sanalla said in a statement the NOC was working on plans to increase production further. He has previously set a goal of boosting output to 1.1 million bpd by August. The NOC gave no breakdown for the latest production increase, but it is mainly due to the reopening of the major western field of Sharara last week. Sharara was producing more than 200,000 bpd before its operations were halted by pipeline blockades twice in the past two months, causing national output to drop to less than 500,000 bpd. The NOC said on Thursday that the lifting of the blockade at Sharara would also allow […]

Libya Oil Output Rebounds as Sharara, Feel Fields Restarted

1 May 2017   Libya

OPEC member pumping more than 700,000 barrels a day: Alaokali Biggest field Sharara at 216,400 barrels daily after restart Libya’s crude production rebounded to more than 700,000 barrels a day as the OPEC member’s biggest oil field and another deposit in its western region resumed pumping after a halt. The Sharara field is currently producing 216,400 barrels a day, while the El Feel, or Elephant, deposit is pumping 26,500 and is expected to boost output further, Jadalla Alaokali, a board member at the National Oil Corp., said Sunday by phone. Crude from Sharara started flowing to the Zawiya refinery after the port of Zawiya re-opened last week following a three-week closure . El Feel, idled since April 2015, also restarted last week. Clashes between armed groups and closures of fields have disrupted output as the country with Africa’s largest crude reserves struggles to revive its most important industry. Fighting […]

Libya confirms restart of its largest oil field

29 Apr 2017   Libya

Libya’s national oil company said there may be long-standing agreements in place to keep the taps open in the company to the tune of 200,000 barrels per day. Crude oil prices, which have been drifting deeper into negative territory for several straight sessions, faced further headwinds in early Thursday trading after reports surfaced that Libya was on the rebound. Referencing “a person with direct knowledge of the matter,” Bloomberg News reported Libya’s largest oil field, Sharara, had re-opened. Libya’s National Oil Corp. confirmed the restart with an announcement late Thursday that it was considering an understanding reached between regional leaders and security groups to keep the field open unconditionally, “restoring over 200,000 barrels per day of Libyan oil production with […]

Libya’s Oil Chief Rebukes U.N.-Backed Government

28 Apr 2017   Libya

A rift has opened between Libya’s U.N.-backed government and its powerful National Oil Co., threatening the fractured country’s political cohesion and its nascent petroleum-industry recovery. Libya’s oil-industry chief, Mustafa Sanallah, on Thursday openly criticized the Government of National Accord, a United Nations-backed government whose formation last year raised hopes of political unity in Libya after five years of…

Will Libya’s Production Rebound As Its Largest Oil Field Re-Opens?

26 Apr 2017   Libya

Libya’s biggest oil field, Sharara, which has been offline for most of the past month, is set to reopen after the Petroleum Facilities Guard (PFG) reached an agreement with protesters who have repeatedly shut down the pipelines that pump oil into the field, according to PFG chief, Brigadier General Idriss Abu Khamada. The deal that the PFG has reached will lead to the reopening of the Sharara field, which produces 200,000 bpd, according to Khamada. At the end of March, unnamed armed factions were said to have blocked production at the Sharara and Wafa fields in western Libya, cutting the country’s total output by 252,000 bpd . Sharara alone produced 220,000 bpd before the shutdown, accounting for a large part of Libya’s overall 700,000 bpd production until that point. It resumed pumping oil after a two-year pause last December. Less than a week later, Libya’s National Oil Corporation (NOC) […]

Eni-Operated Libya Oil Field to Re-Open After Two-Year Halt

21 Apr 2017   Libya

El-Feel deposit has yet to resume output due to power outage Field known also as Elephant has 80,000 barrel-a-day capacity Libya’s El-Feel oil field, operated by a venture between Eni SpA and the state producer, delayed its long-anticipated restart after a two-year halt in operations that crimped the OPEC nation’s output. The field, also known as Elephant, reopened Wednesday, according to a person familiar with the situation who asked not to be identified because of a lack of authorization to speak to media. But it hasn’t started pumping yet as officials await guarantees on the field’s security, the state-run National Oil Co. said in a statement on its website Thursday. Output can’t resume until operations restart at Sharara, Libya’s largest oil field, because Sharara helps power El-Feel, NOC said. Sharara isn’t operating because of a valve closure. Idris Bukhamada, a petroleum facilities guard brigadier, also said that an electricity […]

Giant Libyan Oilfield Reopens After 2 Year Outage

21 Apr 2017   Libya

The El-Feel oil field in western Libya—operated by a joint venture between Italy’s Eni and Libya’s National Oil Corporation (NOC)—reopened on Wednesday after two years, and expects to start pumping oil as soon as a power outage is fixed, Bloomberg reported on Thursday, citing a person familiar with the matter. Should the field, also known as Elephant, start producing soon, it could add up to 90,000 bpd to Libya’s oil output that has been crippled by continuous faction fighting and political turmoil. Authorities are working to fix soon the power outage at the field, which has been closed since April 2015, Petroleum Facilities Guard (PFG) Brigadier Idris Bukhamada told Bloomberg. In December last year, NOC confirmed in a statement the re-opening of Shahara and El-Feel fields, with production capacity of about 330,000 bpd and 90,000 bpd, respectively, after Rayayina Patrols Company of the PFG, Western Branch, announced lifting of […]

Libya’s Haftar says Russian base not being discussed – RIA

13 Apr 2017   Libya, Russia

The question of a Russian military base being set up on Libyan territory is not being discussed, Russia’s RIA news agency quoted Libyan military commander Khalifa Haftar as saying on Thursday. (Writing by Christian Lowe; Editing by Alexander Winning)

Libyan Oil Output Said to Drop to Six-Month Low on Field Halt

12 Apr 2017   Libya

Production cut to 490,000 barrels a day, person familiar says Country’s biggest field Sharara stopped pumping on April 9 Libya’s oil production fell by 30 percent to the lowest level since September as the OPEC producer’s biggest field stopped pumping just one week after reopening from an earlier halt. The North African nation’s output dropped to 490,000 barrels a day from 703,000 a day after the Sharara field shut, a person familiar with the situation said, asking not to be identified because of a lack of authorization to speak to media. Sharara pumped about 213,000 barrels a day before halting on April 9, the person said. The country is currently producing at its lowest level in more than six months, data compiled by Bloomberg show. The pipeline that transports crude from Sharara in western Libya to the Zawiya refinery also stopped operating on April 9. The National Oil Corp. […]

Libya estimates field closure costing $9.8 million per day

12 Apr 2017   Libya

The closure of one of the largest oil fields in Libya means a loss of about $9.8 million and the outage of huge volumes of oil, a national oil company said. Libya’s National Oil Corp. confirmed its Sharara oil field was shut down because of attacks by militants on regional pipeline infrastructure. The field has operated in fits and starts as Libya tries to push the momentum on the national security front toward the side of peace and emerged from a previous closure just one week ago. The NOC said in a statement the closure resulted in the loss of “immense” volumes of oil and natural gas designated for exports across the Algerian border. The loss from the shutdown was estimated […]

Libyan Oil Production Falls Further As Wafa Field Goes Offline

12 Apr 2017   Libya

Just a day after production at Libya’s largest oil field was suspended , the National Oil Corporation told local media that another field, Wafa, has also stopped producing. This could result in daily losses of as much as $10 million, NOC warned, adding that oil and gas from Wafa could siphon into Algeria, as the field is connected underground with Algeria’s Alrar. Sharara and Wafa together account for over 250,000 barrels of crude in Libya’s total daily output. Two weeks ago, an unnamed armed group blocked the pipeline feeding crude from Sharara and Wafa into the Zawiya export terminal, sending oil prices soaring. Production was resumed a few days later. This Sunday, reports of another pipeline block at Sharara emerged, again referring to those responsible for the block as unnamed armed groups. This situation was resolved more quickly, with intervention from NOC’s chairman Mustafa Sanalla, who managed to convince […]

Libya Biggest Oil Field Said to Shut for 2nd Time in Two Weeks

11 Apr 2017   Libya

Libya’s biggest oil field was said to stop producing, just one week after it reopened, the latest in a series of disruptions in the country’s crude output. The pipeline carrying crude from Sharara, Libya’s biggest field, to the Zawiya refinery stopped operating on Sunday, according to two people familiar with the matter who asked not to be identified because they’re not authorized to speak to media. It wasn’t clear why the pipeline was shut. The state oil company National Oil Corp. couldn’t be reached immediately for comment. Sharara, in western Libya, was pumping 200,000 barrels a day, the NOC said on April 4. The halt is poised to disrupt the country’s production which just returned to its normal levels of about 700,000 barrels a day. Clashes among rival armed groups in early March led to the closing of two of the nation’s biggest oil export terminals, forcing a number […]

OMV sees Libya as a natural fit

11 Apr 2017   Libya

Libya fits in well with a strategy of capitalizing on mature onshore oil basins and service to European energy needs, the head of Austria’s OMV said. Representatives from the National Oil Corp. of Libya met with their counterparts at OMV in Vienna. OMV Chief Executive Officer Rainer Seele said the joint meeting was indicative of the strategic value of Libyan oil. Libya holds, by OMV’s estimate, around 47 billion barrels of oil. Onshore areas are considered mature, though OMV said that’s where it’s positioned best. “Libya is an ideal technological fit for OMV,” he said in statements emailed to UPI. According to Libya’s NOC, both sides focused on developing technical studies to increase the reserve estimate and […]

Libya Biggest Oil Field Said to Shut for 2nd Time in Two Weeks

10 Apr 2017   Libya

Libya’s biggest oil field was said to stop producing, just one week after it reopened, the latest in a series of disruptions in the country’s crude output. The pipeline carrying crude from Sharara, Libya’s biggest field, to the Zawiya refinery stopped operating on Sunday, according to two people familiar with the matter who asked not to be identified because they’re not authorized to speak to media. It wasn’t clear why the pipeline was shut. The state oil company National Oil Corp. couldn’t be reached immediately for comment. Sharara, in western Libya, was pumping 200,000 barrels a day, the NOC said on April 4. The halt is poised to disrupt the country’s production which just returned to its normal levels of about 700,000 barrels a day. Clashes among rival armed groups in early March led to the closing of two of the nation’s biggest oil export terminals, forcing a number […]

Oil Rally Stalls as Libya Production Resumes

4 Apr 2017   Libya

Crude-oil futures fell on Monday, snapping a four-session winning streak, after the resolution of output disruptions in Libya brought the recent rally in prices to a halt. U.S. crude futures shed 36 cents, or 0.7%, to $50.24 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 41 cents, or 0.8%, to $53.12 a barrel on ICE Futures Europe. The declines came after oil prices logged their strongest weekly…

Libya’s Oil Production Set to Rebound as Biggest Field Reopens

4 Apr 2017   Libya

Libya’s crude production rebounded to about 660,000 barrels a day as the OPEC nation’s biggest oil field resumed output after about a week of disruption. Force majeure on the Zawiya export terminal was lifted after pumping resumed Sunday at Sharara, the nation’s biggest oil field, Mustafa Sanalla, chairman of Libya’s state-run National Oil Corp., said Monday by phone. Libya’s overall production is 660,000 barrels a day, according to a person familiar with the matter who isn’t authorized to speak to the media and asked not to be identified. Libya’s output had dropped to about 500,000 barrels a day last week when production was halted at Sharara, according to the same person. Libya, with Africa’s largest oil reserves, is struggling to recover from years of conflict between rival governments and militias. Its production was exempted from the Organization of Petroleum Exporting Countries’ production cuts, because of its internal strife. Some […]

Mysterious Outage In Libya Could Drive Oil Prices Higher

31 Mar 2017   Libya

It’s been a rollercoaster ride for Libya’s oil sector the last few months . With production from this important OPEC player swinging wildly with unstable politics in the country. And news this week suggests things just got worse for Libya’s oil industry — in a major way. Unnamed sources in the country told Bloomberg Wednesday that Libya’s largest oil field, Sharara, has been suddenly shut in. With the pipeline carrying crude from this massive operation having been completely idled. As a result, sources said Libya’s overall oil production has now fallen to 560,000 barrels per day. Coming just days after Libya’s National Oil Corp. had publicly pegged the country’s production at 700,000 b/d. That suggests the stoppage at Sharara has lowered production by 140,000 b/d — representing a 20% decline. With the shortfall happening virtually overnight, and with no apparent warning to oil traders. Here’s the most important point: […]

Libya’s Oil Output Falls to Six-Month Low as Field Shuts

30 Mar 2017   Libya

Libya’s crude production dropped to about 500,000 barrels a day, the lowest since September, as exports from the nation’s second-largest terminal at Zawiya were disrupted. The OPEC nation’s output has fallen from about 700,000 barrels last week since production halted at Sharara in southwest Libya following the shutdown of the pipeline that links the field to Zawiya, according to a person familiar with the matter who isn’t authorized to speak to the media and asked not to be identified. Shipments from Zawiya , west of Tripoli, are now under force majeure. An increase in Libya’s crude output since late last year faltered this month when an armed group took control of the nation’s biggest oil port at Es Sider , east of Tripoli, where the first tanker in weeks loaded on Monday, according to tanker tracking. The nation’s output averaged about 624,000 barrels a day in the past five […]

Libya’s NOC locked in new battle over oil sector powers

29 Mar 2017   Libya

Libya’s National Oil Corp, or NOC, has become embroiled in a new political battle as it seeks to defend its role as both policy setter and regulator in the oil and gas sector. NOC chairman, Mustafa Sanalla rejected plans from the internationally recognized government in Tripoli which would divide the state-owned company’s powers. The UN-backed Presidency Council (PC) issued an order Monday dividing the authority of Libya’s oil ministry between the prime minister’s office and the NOC. It also stripped Sanalla of his position as oil minister, a role he inherited by default in 2014 when nobody was nominated to fill the position. “I have asked the Presidency Council to withdraw its recent resolution. It has exceeded its authority,” Sanalla said in a statement late Monday on the NOC’s website. Under the order, the prime minister’s office will assume the role of a traditional oil sector regulator — signing […]

Libya’s Oil Output Drops After Biggest Field Closes

29 Mar 2017   Libya

Libya’s biggest oil field was said to stop producing, leading to a 20 percent decline in crude output from the country with Africa’s largest reserves. The OPEC nation’s output dropped to 560,000 barrels a day, according to a person familiar with the matter who isn’t authorized to speak to the media and asked not to be identified. The North African country was pumping 700,000 barrels a day, Mustafa Sanalla, chairman of state-run National Oil Corp., said on March 22. Oil prices rose as much as 2.2 percent. The pipeline carrying crude from Sharara, Libya’s biggest field, to the Zawiya refinery stopped operating, the person said. It wasn’t clear why the pipeline was shut. The NOC didn’t respond to calls seeking comment. The NOC declared force majeure on loadings of Sharara crude from the Zawiya oil terminal and on loadings of Wafa field condensate from the Mellitah terminal, according to […]

Libya’s oil output down 252,000 bpd due to armed protests

29 Mar 2017   Libya

A general view of the El Sharara oilfield, Libya December 3, 2014. Oil production from the western Libyan fields of Sharara and Wafa has been blocked by armed protesters, reducing output by 252,000 barrels per day (bpd), a source at the National Oil Corporation (NOC) said on Tuesday. NOC declared force majeure on loadings of Sharara crude from the Zawiya oil terminal in the west of the country and Wafa condensate loadings from the Mellitah terminal. Supplies were stopped by the shutdown of pipelines leading from the fields to Zawiya refinery and port, a Libyan oil source said. The identity of the group was not immediately clear and there had been no claim of responsibility, he said. The shutdown at Sharara, which had been producing about 220,000 bpd, began on Monday, a day after the Wafa shutdown, the NOC source said. There was no official comment from the NOC. […]

Libya’s Biggest Port Loads First Oil Tanker Since Clashes

28 Mar 2017   Libya

Libya’s biggest oil terminal loads its first tanker since fighting between armed groups earlier this month halted shipments from two ports in the country with Africa’s largest crude reserves. The Suezmax vessel Demetrios, which can carry as much as one million barrels, loaded from Es Sider for export to China, according to a person familiar with the situation, who asked not to be identified because the matter isn’t public. Fighting between rival groups erupted on March 3, disrupting output and forcing Es Sider and Ras Lanuf, the country’s third-biggest terminal, to halt shipments. Operations at both ports have since restarted after the clashes ended. Libya’s oil production has climbed back to where it was before the battle for control of the ports forced Waha Oil Co. , which feeds Es Sider, to suspend output. The country is producing 700,000 barrels a day and targets 800,000 before the end of […]

Libya’s National Oil Corp warns of new attempt at independent oil sales

27 Mar 2017   Libya

Libya’s National Oil Corporation (NOC) said on Sunday that it had identified “illegal” efforts to sell crude oil without its approval and warned potential buyers not to enter into such contracts. Factions based in eastern Libya have previously tried to sell oil independently of NOC in Tripoli, but their moves have been frustrated by U.N. resolutions that remain in place. “NOC identified a group of individuals abusing the current status of political division in Libya by entering into illegal contracts with unknown or unqualified companies,” NOC said in a statement without providing detail on who was involved. “These individuals, and others associated with them, have offered Libyan crude oil for sale at huge discounts below the official selling price (OSP).” The statement added that this could cost the […]

Libya sets goals for higher oil production

24 Mar 2017   Libya

Libya aims to increase crude oil production at some of its fields by 55,000 barrels to the extent that conditions permit, the nation’s main oil company stated. Officials with Libya’s National Oil Corp. met with representatives from Italian energy company Eni and Mellitah Oil & Gas, which ranks itself as the largest in Libya in terms of production. The NOC said all parties discussed increasing production at the Abu Attifel and al-Remal oil field by 55,000 barrels within the next few weeks “as per the scheduled plan and to the extent that resources permit.” Eni lists the fields in its portfolio and counts Mellitah as the operator. Oil is fed from the complex to the coastal terminal at Zuetina and then onto the […]

Libyan oil output rises to 700,000 bpd after port fighting ends: NOC

23 Mar 2017   Libya

Libya’s oil production has reached 700,000 barrels per day (bpd), the National Oil Corporation (NOC) said on Wednesday, recovering from a drop earlier this month caused by fighting at two key oil ports. “We are working very hard to reach 800,000 barrels by the end of April 2017, and, God willing, we will reach 1.1 million barrels next August,” NOC Chairman Mustafa Sanalla was quoted as saying in a statement. The NOC said in a separate statement it hoped to produce 55,000 bpd in the coming weeks from the Abu Attifel and Rimal fields, which are currently closed for maintenance. The fields are operated by Mellitah Oil and Gas, a joint venture between the NOC and Italy’s ENI. The NOC said Mellitah is currently producing 41,000 bpd […]

Libya’s Oil Production Rebounds Back to Level Before Clashes

23 Mar 2017   Libya

Libya’s oil production has climbed back to the level before clashes disrupted output three weeks ago and forced the OPEC nation’s two biggest oil ports to halt shipments. Output is 700,000 barrels a day and the target is 800,000 barrels a day before the end of April, Mustafa Sanalla, chairman of state-run National Oil Corp., said by email Wednesday. The nation’s biggest port, Es Sider, will load a tanker with crude on March 26, Jadalla Alaokali, board member at NOC, said earlier Wednesday by phone. Libya has sought to boost crude exports after fighting among rival militias hobbled oil production following the 2011 revolt that ousted former leader Moammar Al Qaddafi. The conflict showed signs of calming in recent months, with oil output rising to 700,000 barrels a day in February from 260,000 a day in August, according to data compiled by Bloomberg. Libya pumped 1.6 million barrels a […]

Why Libya Oil Revival Hinges on Fate of Two Ports

23 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.

1. Why are the ports so important?

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.

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.