Libya’s eastern-based government and Tripoli-based National Oil Corp (NOC) announced on Thursday the reopening of all oil fields and export terminals after a dispute over leadership of the central bank was resolved.
Crude oil exports from Libya’s major ports have been shut for a week in the latest case of major unrest in the country, an OPEC member that pumps about 1% of world oil output
A political standoff in Libya risks once more paralyzing the north African country’s lucrative oil sector.
But the frequency of its power tussles and crude disruptions have left long-term oil price support into question.
Oil prices rallied on Monday on the Libyan reports, but had already surrendered much of these gains during the Tuesday session.
Crude oil prices ticked higher earlier today, after posting two daily losses, as the shutdown of oil fields in Libya took precedence over demand worry.
Oil advanced after Libya’s eastern government said it will halt exports, building on tensions in the Middle East after Israeli strikes on Hezbollah targets in southern Lebanon raised concerns of a broader conflict.
Africa’s largest refinery, the Dangote facility in Nigeria, is actively seeking crude oil supplies from Libya and Angola. This move comes as the refinery faces difficulties obtaining adequate domestic crude due to theft, pipeline vandalism, and low investment in Nigeria’s oil sector.
Libya’s Petroleum Facilities Guards (PFG) threatened on Sunday to close all oil and gas facilities in the country’s western region after the end of a 10-day deadline to authorities to meet their demands, including a 67% salary rise.
Political instability has hindered Libya’s oil production, but the country is eager to regain its energy prominence with a goal of reaching 2 million barrels per day.
Substantial foreign investment is required to modernize Libya’s aging oil infrastructure, including pipelines and storage facilities.
Despite challenges, Libya’s significant untapped oil reserves present a substantial opportunity for economic growth and energy sector revival.
Speakers participating during a finance panel at the Libya Energy&Economic Summit (LEES) this week shared that the country’s planned licensing rounds – for domestic companies as well as an international tender – will be launched soon, in line with national targets to more than double oil production.
The Director of the Media Office at the Tripoli based Libyan Ministry of Oil and Gas, Ahmed Al-Tarhouni, told Libya Herald, that talk of the National Oil Corporation’s (NOC) intention to contract with a coalition of Eni / Adnoc /Total and grant them a 40 percent share of production is a legal violation that should be alerted to.