Monday, December 16, 2024

Libya to resume oil production at two of its major fields

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CAIRO (AP) — Libya’s state-run oil company said Thursday it was restarting full oil production, almost two months after shutting down operations in two of its major fields amid a political crisis.

The National Oil Corporation said in a statement that it would resume production at the Sharara and El-Feel oil fields, and export shipments from Es Sider, the country’s largest port. In August, the company declared “force majeure,” a legal maneuver that lets a company get out of its contracts because of extraordinary circumstances.

As part of the review of the force majeure situation, NOC confirmed in its statement that it “can resume the operations of crude oil production and exporting operations to its customers.”

The National Oil Corporation previously blamed the shutdown on the Fezzan Movement, a local protest group. It came as the country’s rival authorities were locked in a dispute over the governance of its Central Bank, which distributes the country’s oil revenues.

In August, the U.N. warned that the country was poised to face even greater instability due to the dispute. But that was resolved in recent days, when the country’s parliament appointed a new governor to the bank.

Libya produces more than 1.2 million barrels of oil per day, and Sharara is the country’s largest field, producing up to 300,000 barrels per day.

The oil-rich country has been in political turmoil since a NATO-backed uprising toppled and killed longtime dictator Moammar Gadhafi in 2011. Since then, Libya has been split between rival administrations in the east and the west, each backed by militias and foreign governments.

The Associated Press

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