Protesters gather in front of Libya’s National Oil Company in February over halt in production
TRIPOLI, July 11 (NNN-AGENCIES) — Libya’s national oil company says it has resumed its vitally important exports after a halt of nearly six months, caused by conflict and political upheaval.
The first tanker has begun loading in the eastern port of Es-Sider.
The company’s production facilities in the region had been blockaded by forces loyal to the renegade Gen Khalifa Haftar.
Oil exports are the backbone of Libya’s economy, and the revenue lost during the halt in output has been estimated at more than $6bn.
Mustafa Sanalla, who has struggled to free Libya’s main economic lifeline as forces battle for control of the country, said the National Oil Corporation was now in a position to lift force majeure, although he cautioned production would remain depressed because of technical problems.
“We are very glad finally to be able to take this important step,” said Sanalla, head of Libya’s national oil company.
The decision follows UN and US-led talks with foreign backers of renegade general Khalifa Haftar, who controls eastern Libya, the NOC and the UN-backed government in Tripoli to strike a deal to get the embargo lifted.
The NOC did not give details of the agreement and it was not clear whether forces loyal to Gen Haftar would allow the company to resume full production.
The forces that protect oil facilities are made up of militias and tribal fighters who are loyal to rival Libyan factions and the NOC last month said it was concerned that Russian and Sudanese mercenaries aligned to Gen Haftar had moved into Sharara, the country’s largest oilfield in the south.
But Sanalla said the lifting of the force majeure was an “important step to national recovery” adding that the first tanker, the Kriti Bastion, would load from the port of Es Sider.
Sanalla warned that restoring full output would take time. Tanker tracking data shows the vessel arrived at the port on Thursday, which lies in the east of the country.
Forces loyal to Gen Haftar imposed the embargo in January as the eastern commander laid siege to Tripoli in an attempt to topple the UN-backed government.
The return of exports, while a boon for Libya, comes at a difficult time for the wider oil market that has been hard hit by the coronavirus pandemic, with demand falling sharply.
“On top of the $6.5bn in lost production we as a nation have suffered, NOC faces huge extra costs to repair infrastructure damage,” said Sanalla.
Libya’s civil conflict has morphed into a proxy war awash with foreign mercenaries since Gen Haftar launched an offensive on the capital last year. — NNN-AGENCIES
