Trade

Libya to restart oil exports from its biggest ports within a week

Friday, 08 July 2016 10:50

Libya has revealed plans to recommence crude oil exports from two of its biggest oil ports within one week.This is coming after rival leaders of Libya’s National Oil Corp., agreed last week to merge the state company, a move meant to assist in ending the struggle over who can control the divided country’s crude exports and revenue.

According to a regional commander of Libya’s Petroleum Facilities Guard, Ibrahim Al-Jedran, Crude exports is to restart from the Es Sider and Ras Lanuf port, which have been closed since 2014.These exports, he said, will be under the control of the Tripoli-based Government of National Accord, which is looking to reunite the divided country.

Al-Jedran added that some minor technical problems related to the transportation network between the oil storage tanks and the Es Sider and Ras Lanuf oil ports, caused during clashes since 2015, will be restored within a few days.The oil ports are now safe after Islamic State pulled back away from them toward Sirte. The petroleum guards are now capable of guaranteeing the safety and security of oil tankers seeking to use the ports,” he said.

Oil officials in Libya have made several forecasts over the past few years that production or exports were expected to increase but those predictions failed to occur. The country pumped approximately 330,000 bopd in 2016, on track for the smallest yearly supply in decades.

Libya pumped about 1.6 Mmbopd before the Qaddafi uprising in 2011. The nation is now the second-smallest producer in the Organization of Petroleum Exporting Countries (OPEC), Bloomberg reports.

Anita Fatunji

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
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