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By Callum Paton.
Tripoli, 16 July 2014:
The political situation may appear grave but there is better news on the . . .[restrict]economic front. National oil production has increased to 550,000 barrels per day a rise attributed predominantly to the restarting of Sharara oilfield.
Spokesman for the National Oil Corporation (NOC) Mohammed Al-Harrari told the Libya Herald that the corporation was pleased with the modest increase but “not yet fully happy”. In 2012 National oil production stood at 1.5 million b/d.
Nearly one week ago, oil started flowing from Sharara oilfield in the southwest following on and off closures which began there more than a year and a half ago. Producing 340,000 b/d at normal operating capacity, the field is operated by Akakus Oil, a joint venture between the NOC and Spain’s Repsol. Its closure cost an estimated $34 million a day.
Harrari confirmed that the eastern oil terminal of Brega remains closed for exports, as a result of a blockade by the local Petroleum Facilities’ Guards (PFG). The action by the guards over unpaid salaries has cut national production by as much as 60,000 b/d over the last five days.
There are hopes that oil output will increase at the end of Ramadan in two weeks times following the reopening of eastern oil ports which had previously been blockaded by Ibrahim Jedhran’s self-declared, federalist Cyrenaica Political Bureau (CPB). Industry insiders have said the terminals will begin exporting once workers return from their holidays.
Force majuere was lifted on the eastern oil terminals of Ras Lanuf and Sidra following their handover by federalist forces over one week ago. No oil had been exported from the two terminals since 18 August last year.
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