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Libyan crude oil output in jeopardy as the eastern and western political faction battle for control

Thursday, 05 May 2016 15:02

(Ecofin Agency) - Libya’s oil production could drop by 120,000 bpd as an argument between the eastern and western political parties have prohibited tankers from loading at the port.

According to an oil official in Tripoli, the country's oil output could decline if the National Oil Corporation (NOC), set up by the eastern government, continues to prevent tankers loading from the eastern Marsa el-Hariga port.

The Seachance tanker which was expected to load on April 26-28 left the port on Wednesday without loading any of its planned 600,000 barrel crude cargo owned by Glencore.

The argument at Hariga, portends to lessen oil output in the country which has declined below the 2011 high of 1.6 million bpd.

Most of Libya's output is concentrated in the east. The NOC in Tripoli has revealed plans to recover output but continuing political clash and constant attacks on eastern oil facilities by Islamic State militants have killed that plan.

The Eastern NOC have told workers at the port to not load the Seachance after the tanker which transported its first oil export shipment was blacklisted by the United Nations and came to be discharged in western Libya.

The head of the Benghazi NOC, Nagi al-Maghrabi, on Wednesday revealed that they have no intention to shut down Hariga and the failure to load the Seachance was made for official reasons.

There is no plan to shut down the port, the revenue is for all Libyans. We just ask to have the document for any shipment in advance ... otherwise it will not be allowed to load. We still respect all contracts”, he told Reuters.

Anita Fatunji

 
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