AfrOil: Libya crude oil output rises to 1.13mn bpd as central bank crisis ends

Libya's crude oil and condensate production has reached 1.13mn barrels per day (bpd) after operations resumed following a political stalemate over the control of the country’s central bank, S&P reported on October 8. 

The full capacity of all oilfields stands at 1.2mn bpd. 

The Sharara oilfield, Libya's largest, is now producing around 240,000 bpd. Other eastern-controlled major oil fields in the Sirte Basin and Oil Crescent region have started to operate at full capacities including vital oil terminals such as the Ras Lanuf, Brega and Es Sider.

Over the past 24 hours, Libya also produced 206,666 barrels of gas equivalent. The authorities expect to restore oil and gas production to pre-blockade levels of around 1.2mn bpd within a few days.

"This recovery comes just days after the lifting of the force majeure, as a result of the guidance from the Chairman and Board members of the NOC, as well as the combined efforts of the employees of the NOC and oil companies," the state oil utility NOC said. "Production rates are expected to return to pre-closure levels within the next few days."

Libya’s oil production was halted for over a month due to a political crisis over the leadership of the central bank, the only internationally recognised entity managing oil revenues. The country saw its output fall by as much as 750,000 bpd from late August owing to the dispute. 

Full-scale crude oil production resumed last week, following a UN-backed agreement between Libya's eastern and western factions on electing new central bank leadership.

The end of the crisis will bring several hundred thousand barrels per day back to the global oil market, helping to offset concerns over potential supply shocks from Middle Eastern tensions.

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