Oil exports remain halted at major Libyan ports, say engineers

Libya production down more than half from usual levels

By Reuters

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A view of pipelines and a loading berth of the Marsa al Hariga oil port in the city of Tobruk, east of Tripoli, Libya. — Reuters file

Published: Mon 2 Sep 2024, 4:22 PM

Oil exports at major Libyan ports were halted on Monday and production curtailed across the country, engineers said, amid a standoff between rival political factions over control of the central bank and oil revenue.

Some output was being increased to feed local power generation, they said.

Libya’s oil production has plummeted by more than half from typical levels since the standoff began last month, when western factions moved to oust veteran Central Bank of Libya (CBL) Governor Sadiq al-Kabir and replace him with a rival board.

In response, eastern factions called for a shut down to all oil production.

The crisis threatens to end a four-year period of relative peace in the Opec member nation. Exports remained halted at the ports of Es Sidra, Ras Lanouf, Hariga, Zueitina, Brega and Sirte, engineers there said.

Arabian Gulf Oil Company (AGOCO), a subsidiary of the state-owned National Oil Corporation (NOC), ordered production to be boosted at its fields to feed a power plant at Hariga port, engineers have told Reuters.

AGOCO, which controls the Sarir, Nafoura and Messla fields, was producing 139,000 barrels per day (bpd) on August 28, down from 290,000 bpd on July 20, NOC said last week.

Reuters was not immediately able to ascertain its current production.

NOC did not immediately respond to a request for comment.

NOC said on Thursday that total production had plunged to just over 591,000 bpd by August 28 from nearly 959,000 bpd on August 26, amounting to losses of over $120 million over the three days. Production was at about 1.28 million bpd on July 20, NOC said.

Libya’s average production in July was 1.18 million bpd, according to Opec, citing secondary sources.