Libyan oil production fell below 1 million barrels a day for the first time in months, as delays in funds for infrastructure repairs forced a halt at a main port.
The National Oil Corp. declared force majeure on exports from the eastern port of Hariga in a statement late Monday. The state oil firm attributed the stoppage to the central bank’s “refusal to release the budget for the oil sector for long months.”
The situation has led to accumulations of debt for companies such as Arabian Gulf Oil Co., forcing it to stop pumping 280,000 barrels a day, the NOC said. Force majeure is a clause in contracts allowing deliveries to be suspended.
OPEC member Libya was producing a daily 1.29 million barrels of crude before Hariga’s halt and is now pumping at its lowest level in months, according to a person with knowledge of the situation who asked not to be identified because of lack of authorization to speak to the media.
The dispute between the NOC and central bank highlights a long-running point of contention that could complicate Libya’s efforts to move beyond a devastating civil war and threaten the recovery of its vital oil industry. The country, home to Africa’s largest crude reserves, had been ramping up production since September after a blockade on most of its oil fields and ports was lifted.
The person said Sirte Oil Co. has also lost about 20,000 barrels a day in output and more companies could be forced to reduce production due to the lack of funds needed for urgent maintenance. Hariga was scheduled to load six cargoes of 1 million barrels each of Sarir and Mesla crude next month, totaling 194,000 barrels a day, according to a loading program.
The NOC has long complained it needs more money to fix the North African nation’s aging oil infrastructure. Its chairman, Mustafa Sanalla, told Bloomberg TV last month that output could rise to 1.45 million barrels this year and 1.6 million within two years if it receives adequate funds.
Libya Oil Boss Vows to Up Production, Work With Unity Government
The NOC said Libya’s central bank bears “full legal responsibility” for the situation after it refused to release some 1 billion dinars allocated to the sector. The state oil producer has received less than 2% of the funds needed to proceed with its maintenance and production plans, and as a result is dealing with damage to storage tanks and pipelines, according to the statement.
"Oil" - Google News
April 20, 2021 at 02:02AM
https://ift.tt/3tz5vbA
Libyan Oil Output Drops Below 1 Million Barrels on Port Halt - Bloomberg
"Oil" - Google News
https://ift.tt/2SukWkJ
https://ift.tt/3fcD5NP
Bagikan Berita Ini
0 Response to "Libyan Oil Output Drops Below 1 Million Barrels on Port Halt - Bloomberg"
Post a Comment