• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 4 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 12 mins Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 7 hours Coal Boom in Asia is Real and a Long Trend
  • 3 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 4 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 13 hours Solar Panels at 26 cents per watt
  • 6 hours Huge UK Gas Discovery
  • 18 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 18 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 18 hours US to become net oil exporter in November: EIA
  • 17 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 16 hours US Shale Drilling lacks regulatory body.

Sharara To Return To 300,000 Bpd Production In Two Weeks

Sharara

The Sharara crude oil field in Libya will recover its daily rate of production to 300,000 bpd within two weeks, Reuters reports, quoting a field engineer. The country’s largest field could produce more than 315,000 bpd but has been plagued by outages, the latest among which lasted almost three months.

The field was originally closed for production in December, when clashes between militant groups forced the National Oil Corporation of Libya to institute a force majeure, which was only lifted last week. Originally, locals occupied Sharara in early December with demands for better economic conditions and power supply security. The occupation lasted until early February, when the Libyan National Army, a group affiliated with the eastern Libyan government, took control of the field.

The force majeure remained in place as the NOC refused to yield to the locals’ demands for payments, deeming them ransom demands and warning this would set a dangerous precedent. Then, making the situation more complicated, the LNA faced the Petroleum Facilities Guard, an old adversary and a group loyal to the UN-recognized Libyan government. The situation was resolved only at the end of February with mediation from the United Arab Emirates.

According to NOC’s chairman, Mustafa Sanalla, the three-month blockade of the field had cost it US$1.8 million and 20,000 bpd in lost production capacity as a result of vandalism and looting. Last week NOC said it was working to restore the 20,000 bpd in lost capacity at the field.

Sharara has become the main reason Libya was exempted from the latest round of production cuts and also the main reason the North African country is widely seen as a wild card in global oil price forecasts. Since it accounts for around a third of the country’s total oil output, Sharara, like the export terminals in the Oil Crescent, has become a natural target for various groups vying for power and control over Libya’s oil wealth.

By Irina Slav 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