• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Hong Kong protesters appeal to Trump for support.
  • 16 hours Europe: The Cracks Are Beginning To Show
  • 4 hours Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 18 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 4 hours Millennials: A boil on the butt of the work ethic
  • 5 hours A little something for all you Offshore swabbies
  • 13 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 32 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 20 mins When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 3 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 3 hours Shale profitability
  • 6 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 day Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 13 hours Let's shut down dissent like The Conversation in Australia
The Digital Trend Taking The World By Storm

The Digital Trend Taking The World By Storm

An overlooked sports niche is…

Houthis Threaten More Attacks In The Middle East

Houthis Threaten More Attacks In The Middle East

The Houthi rebels have threatened…

Libyan Oilfield Fire Adds To Oil Outages In Iran, Venezuela

Libya oil port

The Sarir oilfield in Libya’s Sirte basin has seen its oil production drop by 30,000 bpd since June 9 when a fire broke out in a power generator due to high temperature, Libya’s National Oil Corporation (NOC) said on Tuesday.

The Sarir field, operated by NOC’s subsidiary Arabian Gulf Oil Company (AGOCO), is Libya’s largest oilfield with proven reserves of 4.8 billion barrels, according to the national oil company.

Current oil production at the Sarir oil field is around 155,000 bpd.

The fire started at the power station at the field and cut off electricity to parts of it, NOC said, adding that “An internal investigation is underway to determine the cause of the temperature rise and an estimated restart date post repair works.” 

Yet, some operations at the field that had been suspended since May due to a technical issue have recently restarted, NOC said.

The technical difficulties at the field highlight the fragile state of the Libyan oil industry now that fighting between rival armies continues in and near the capital, Tripoli.

While the oil market is fixated on the U.S.-China trade war for signs of demand, and on Iran, Venezuela, and the Middle East for signs of more supply disruptions, investors have not fully priced in the increased risk that Libya’s fighting could result in a serious oil supply outage, analysts say.

Related: OPEC’s Struggle To Avoid $40 Oil

The security situation in Libya has materially worsened this spring after eastern strongman General Khalifa Haftar ordered in early April his Libyan National Army (LNA) to march on the capital Tripoli. The self-styled army has been clashing with troops of the UN-backed government in a renewed confrontation that could escalate and threaten to disrupt, once again, Libya’s oil production and exports.

“Protracted hostilities continue to hamper NOC operations and our ability to serve the Libyan people. Key infrastructure is being damaged and security eroded - allowing criminal elements to prosper,” NOC’s chairman Sanalla said in a statement last month.

“NOC will take all necessary measures to investigate and prosecute those committing crimes that undermine the oil sector and our ability to maintain operations. An immediate ceasefire is needed. The alternative is further escalation and destruction,” Sanalla said in May.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play