The Address | Benghazi – Libya
LIBYA – Libyan oil output has recovered sharply over the past few years, with production having jumped to an over five-year high of around 1.2 million b/d late last year, but security and political challenges continued to impede the sector. One of the biggest flash points has been at the country’s largest oil field, El Sharara.
Production at Sharara should near 300,000 b/d in the next few days, from current levels of 260,000 b/d, the Chairman of the National Oil Corporation (NOC), Mustafa Sanalla, told S&P Global Platts Tuesday.
Sharara came online on March 4 for the first time in almost three months, following the removal of an armed group that had occupied the site.
In early-February, Libyan National Army (LNA), led by Field Marshal Khalifa Haftar, captured the field after clashes with forces loyal to the UN-backed Government of National Accord.
“NOC is still repairing the damage caused by looting and vandalism during the three-month blockade of Sharara, resulting in a capacity reduction of 20,000 b/d. A delay of approved government budget hampers this activity,” Sanalla said.
Prior to December, the field held a production capacity of around 320,000- 340,000 b/d, according to Platts estimates.
Sanalla said he was hopeful that security at the field will remain stable.
“Guarantees have been given that illegal militia will not be readmitted to site. NOC continually assesses security protocols and the safety of site infrastructure,” he added.
S&P Global Platts