Storm disrupts Libyan oil exports

Market: Crude oil
11/09/23

At least four of Libya's oil export terminals remain closed today after a severe rainstorm hit the country's eastern region over the weekend, leading to flooding and a number of fatalities.

The ports of Es Sider, Ras Lanuf, Brega and Zueitina in eastern Libya were closed on 9 September and are not expected to reopen until at least tomorrow, according to shipping agents. All four terminals have tankers waiting close by.

Rescue efforts are underway as emergency teams head to the region where flooding has destroyed properties, swept away roads and caused widespread power outages. Storm Daniel, which battered Greece last week, hit Libya in the early hours of 10 September. Its impact is expected to dissipate today, according to weather reports.

Libya's state-owned oil company NOC directed its affiliates to reduce operational activities yesterday, including well maintenance and drilling. The firm said Libyan crude production stood at 1.23mn b/d on 10 September but it has yet to respond to a request for information on the status of export operations.

Bad weather has caused the closure of Libyan export terminals in the past. If prolonged, it can have a knock-on effect on oil production due to the country's limited storage capacity. Libya's crude exports averaged 960,000 b/d in the first eight months of the year, with around 80pc of that heading to European destinations, according to data from oil analytics firm Vortexa.

By Aydin Calik and Matthew Mitchell

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