Libyan crude production slips below 600,000 b/d

Libya's crude output has fallen to below 600,000 b/d, less than half what the country was producing just a month ago, according to figures reported by state-owned oil company NOC.

Production has plummeted in recent days after Libya's eastern-based administration announced a blockade on oil output and exports in response to moves by its rival, the Tripoli-based Presidential Council, to replace the central bank governor.

Libya produced 591,024 bl on 28 August, NOC said, down from 783,422 bl on 27 August and 958,979 bl on 26 August, NOC said. Production is almost certain to have fallen further on 29-30 August.

It represents a more than halving of output in the space of just a month. Production stood at 1.28mn bl on 20 July, NOC said, while Argus assessed the July average at 1.2mn b/d.

Total losses over 26-28 August amounted to around 1.5mn bl, worth just over $120mn. NOC said.

All of Libya's eastern oil terminals — Es Sider, Ras Lanuf, Zueitina, Marsa el Hariga and Marsa el Brega — received instructions to stop operations at 15:00 local time on 29 August, according to port agents in the country. Some tankers have managed to load crude since the blockade was announced at the start of the week. The New Amorgos and Ohio loaded at Zueitina and Es Sider, respectively, and have since sailed from the country. Five more tankers were scheduled to load crude in the country from today, according to Kpler tracking, four of them in the east.

The clash between the rival east and west political factions in Libya had been brewing for over week before the blockade announcement. The eastern-based Libyan National Army (LNA) has imposed several politically motivated oil blockades in the past few years. The LNA ordered the shutdown of the El Sharara field earlier this month, resulting in the loss of around 250,000 b/d of output.

By Nader Itayim