Production at Libyan oil field gets back on track

Production at Libyan oil field gets back on track

/ Oil & Gas / Monday, 12 October 2020 08:39

Libya's National Oil Corporation gave the green light for production to resume at a major oil field following the lifting of a nine-month-long blockade.

The state oil firm lifted force majeure on Al-Sharara, a field in Oubari region about 900 kilometres (550 miles) south of Tripoli, and instructed the operators Akakus to resume production.

Force majeure refers to external unforeseen elements that prevent a party from fulfilling a contract.

The NOC, in a statement, said it had struck an agreement with armed groups at the site to lift any obstacles and to ensure the safety of staff and operations.

Al-Sharara normally produces 315,000 barrels per day of Libya's overall output of more than one million bpd.

On September 19, the NOC said it was lifting force majeure on what it deemed secure oil ports and facilities, a day after eastern strongman Khalifa Haftar said he was lifting a blockade on oil fields and ports.

Pro-Haftar groups had blockaded key fields and export terminals from January 17 to demand what they called a fair share of hydrocarbon revenues.

The blockade, which has resulted in an estimated $10 billion in lost revenue according to the NOC, has exacerbated electricity and fuel shortages in Libya.

The North African state has been in chaos since a 2011 uprising that toppled and killed longtime dictator Moamer Kadhafi.

The main military fault line pits Haftar and an administration in Libya's east against an UN-recognised Government of National Accord (GNA), based in Tripoli.

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