Libya Getting Back on its Feet, For Now
Libya’s National Oil Corporation (NOC) said today that its Arabian Gulf Oil Co. (AGOCO) unit restarted production at the Sarir field in the east of the country. Statistics released from Libya’s National Oil Corporation last week showed production from the country is down 80% since 2011, due to disruptions in fields like the Sarir.
Sarir field was producing 185 MBOPD, nearly two-thirds of the country’s current output, before the pipeline linking it to its export terminal, Marsa el-Hariga, was attacked last week. An NOC spokesman said Monday that “limited quantities” of Sarir crude had begun flowing to the port of Marsa el-Hariga over the weekend after repairs were made to the pipeline, reports Platts. The attack on the pipeline caused the operating pressure to drop to 130 PSI from 450 PSI, bringing onshore production to a virtual standstill.
Cargos being loaded at the Zueitina port for the first time in eight months
The first tanker in almost a year loaded crude from the eastern Libyan port of Zueitina on Sunday, an oil official told Reuters. A Greek-registered tanker left for Italy later on Sunday after loading 750 MBO, the official said.
The port is the smallest of four eastern terminals in Libya, but any revenue brought in from oil exports is badly needed. As much as 90% to 95% of the country’s revenue comes directly from oil. Libya’s production has fallen to just 330 MBOPD in January; about 80% less than the 1,600 MBOPD it was producing in 2011.
With production resuming at Sarir and exports starting up again at Zueitina, Libya is moving towards reaching the higher outputs seen before civil unrest erupted inside the country. However, traders are still wary of existing conflict in the war-torn country. “It’s hard for me to say conclusively what will happen in Libya in the future,” a trader told Platts on Monday. “It changes by the minute.”
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