Members of a Libyan paramilitary force responsible for safeguarding the OPEC nation’s oil ports ordered a halt in crude exports at three eastern terminals while they press salary demands.
Petroleum Facilities Guard members ordered the suspension of loading at Es Sider, the country’s largest port, as well as Hariga and Ras Lanuf, according to people familiar with the situation, who asked not to be identified. The tanker Dubai Hope, currently at Ras Lanuf, would be the last to load until the protesters’ demands are met, according to two of the people.
The halts could reverse the quick recovery in Libya’s oil exports in recent months. And while the stoppage might be resolved soon, it underscores the fragility of the sector following almost a decade of civil war.
The North African country’s output surged from almost zero to nearly 1.25 million barrels daily after a blockade of ports and fields by eastern-based forces ended in September. The state energy firm was already struggling to sustain the recovery before the guards’ move due to the dilapidated condition of pipelines and other facilities.
Libya’s Oil Output Drops as Pipelines Creak From War and Neglect
Negotiations are under way to resolve the salary dispute, according to one of the people. The protesters had given the government an ultimatum, which ends on Sunday, for their delayed salaries to be paid, according to a letter seen by Bloomberg.
Earlier this month, the guards at Hariga temporarily refused entry to the tanker Olympic Fighter.
The Guard was originally formed as a neutral force to defend oil ports and fields. But its members contributed to a crash in Libyan crude output at the start of last year by blockading some installations on behalf of various warring factions and as they pressed their own demands.
In a separate but more positive example of the challenges it faces, Libya restarted a pipeline that carries crude to Es Sider, after a halt that caused the nation’s production to drop to the lowest level in two months.
The 32-inch link has been repaired and pumping has resumed, Waha Oil Co., which operates the eastern port, said in a statement. That paves the way for the return of 200,000 barrels a day that stopped flowing after Waha shut the pipeline to fix leaks.
Waha, a subsidiary of state energy firm National Oil Corp., was pumping 98,000 barrels a day on Saturday before the pipeline began operating again. It’s expected to be back to its normal daily level of 300,000 barrels within two days, according to a different person with knowledge of the situation.
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January 24, 2021 at 05:54PM
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Libya Guards to Halt Oil Shipments at Eastern Ports in Spat - Bloomberg
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