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Rival Libya governments try to end oil blockade

  • Market: Crude oil
  • 25/04/22

Libya's rival administrations are liaising independently with protesters to try to bring an end to demonstrations that have forced over 500,000 b/d of oil production offline.

The protesters are calling on Abdelhamid Dbeibeh's Government of National Unity (GNU) to transfer its authority to Fathi Bashagha's Government of National Stability (GNS). The latter was elected in late February by Libya's legislative body, the House of Representatives (HoR), but Dbeibeh has since rejected calls to surrender control, arguing that he should remain in charge until national elections are held in June.

As so often in the past, the political conflict has impacted Libya's lucrative oil and gas sector. The latest field and port blockades, which began on 17 April, had led to 530,000 b/d of production being shut in as of 19 April, according to a source at state-owned oil firm NOC.

The rival administrations have since been carrying out separate negotiations with the protesters. The GNU's oil ministry, led by Muhammad Aoun, said yesterday that it had met with tribal factions and that the parties were "in the process of reaching a final agreement" that would allow the suspended production to resume within days.

Bashagha has also visited the so-called "Oil Crescent" region of eastern Libya, a coastal area home to the largest fields and most of the country's oil export terminals. "We clearly demanded the necessity of resuming the export of oil in accordance with disciplined legal mechanisms that guarantee the integrity and transparency of the management of oil revenues," he said.

Tribes in the Oil Crescent have reiterated their demands that the GNU hand over power to the GNS and that NOC chairman Mustafa Sanalla be dismissed. They are also calling for NOC to receive sufficient funds to raise production and for oil revenues to be frozen in Libya's foreign bank until they can be fairly distributed to Libyan provinces by Bashagha's government.

The latest round of protests have disrupted operations at the 300,000 b/d El Sahrara and 70,000 b/d El Feel fields, as well as the Zueitina and Marsa el-Brega terminals. The smaller Abu al-Tilf, Intisar, Nakhla and Nafoora fields have also been forced to cut output, and armed clashes at Libya's largest operational refinery, the 120,000 b/d Zawia facility, damaged several oil product storage tanks last week, according to NOC.

In a meeting with Bashagha last week, the UN secretary-general's special adviser on Libya, Stephanie Williams, stressed the need to "insulate Libya's oil production from being weaponised for political purposes" and called for the oil blockade to be lifted.


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21/02/25

Uruguay eyes oil, gas E&P within energy transition

Uruguay eyes oil, gas E&P within energy transition

Montevideo, 21 February (Argus) — Uruguay's state-run Ancap has hopes for an offshore oil or gas discovery, even as the country gears up for its second energy transition. Uruguay has had only three exploratory wells drilled in its history, two in 1976 and one in 2017, and they all came up dry. Companies have completed 13,000 km² of 2D and 41,000 km² of 3D seismic testing this century. Today, its seven offshore blocks have contracts, plans are underway for a new round of seismic testing and one company, US-based APA, wants to spud an exploratory well in its wholly operated block 6 in late 2026 or early 2027. "For the first time in history, we have contracts in place for all the blocks and there is a great deal of interest that resources can be found" in Uruguay, Santiago Ferro, Ancap's energy transition manager, told Argus . A public hearing on seismic testing was held 13 February and the environment ministry is reviewing proposals for permits. Ferro said seismic testing will only be done in areas lacking data. "We want to take advantage of existing information and complement it with new data to encourage drilling," he said. The plan is for approximately 5,000 km² (1,930 mi²) of new seismic testing on two areas — block 1, operated by Chevron and UK-based Challenger Energy Group, and block 4, operated by Shell and APA. The work will likely happen in the final quarter of this year. Ancap's plans will unfold under the new left-wing government of president-elect Yamandu Orsi, who takes office on 1 March. The Oris administration is committed to deepening Uruguay's energy transition. It already has one of the greenest power grids, with 99pc of power coming from renewables, and the Orsi government wants to guarantee electrification of the transportation sector. He will arrive at his inauguration in an elective vehicle as a sign of the government's commitment. The administration wants to decarbonize transportation in 10 years, which will require incentives for vehicles and investment in additional renewable power, principally solar energy. It has not taken a public stand on oil and gas exploration or what it would do if recoverable resources were discovered. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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France's US crude imports at record again in December


21/02/25
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21/02/25

France's US crude imports at record again in December

Barcelona, 21 February (Argus) — French crude imports in December included a record amount from the US for a third consecutive month, and the US was France's largest crude supplier in 2024. Customs data show imports at 4.2mn t (990,000 b/d) in December, down by 2pc on the year and down from 4.3mn t a month earlier. Deliveries in 2024 were 47.1mn t, lower by 2.4pc on the year. Deliveries of US crude were 1.34mn t in December, up from slightly more than 1.25mn t in November and just over 1.2mn t in October. US crude has continued to arrive in January and February. The US was the largest supplier to the Mediterranean port of Fos-Lavera in January , with more cargoes arriving there and at the Atlantic Le Havre terminal this month, according to Argus tracking. The US is now by far the biggest supplier to France. It provided 11.5mn t of crude in 2024, up from 9mn t in 2023, with the large majority being light sweet WTI. The US supplied no crude to France 10 year ago. The growth since has significantly altered the French crude slate, pushing it lighter and less sulphurous. As recently as 2019, when 4.4mn t of US crude arrived, medium sour grades Saudi Arab Light and Russian Urals accounted for more than 15mn t between them, split 2:1 in favour of Saudi Arabia. Sanctioned Urals was absent in 2024 for a second year in a row and Saudi Arabia supplied just 1.3mn t, down from 3.5mn t in 2023. There has not been a major shift in other suppliers (see chart) . Last year Nigeria supplied 6.4mn t, down marginally on 2023, Kazakhstan shipped 5.3mn t down from 5.6mn t and Algeria 4.2mn t, down from 4.6mn t. While French refinery availability has been plagued by problems since the fourth quarter of 2019 , the lighter sweeter crude slate has resulted in higher production of light products naphtha and gasoline . This increase has occurred even after TotalEnergies definitively closed its 93,000 b/d Grandpuits refinery at the start of 2021. There is the possibility of continued support for US shipments this year. Alternative light sweet Libyan crude can be prone to political disruption, Nigerian domestic crude consumption is growing as the 600,000 b/d Dangote refinery ramps up , and Kazakhstan is under pressure to compensate for exceeding its Opec+ output target and could limit deliveries of CPC Blend. By Adam Porter French crude imports mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US cites 'energy emergency' to expedite water permits


20/02/25
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20/02/25

US cites 'energy emergency' to expedite water permits

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Guyanese refinery not off the table: Minister


20/02/25
News
20/02/25

Guyanese refinery not off the table: Minister

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2025 will be ‘pivotal’ for ExxonMobil in Guyana


19/02/25
News
19/02/25

2025 will be ‘pivotal’ for ExxonMobil in Guyana

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