On Tuesday, Libya’s largest oilfield Sharara was reopened after being forcefully closed by an armed group, indicating that the country’s oil industry is still very fragile and uncertain to support its return to the export markets.
A source commented, “Sharara has reopened after a meeting with the armed group at the field. The group agreed to let operations continue.” NOC had declared force majeure on crude loadings out of the field after the group entered the area.
Previously, the oilfield was briefly restarted on June 6 after nearly five months of closing due to armed unrest. The operator of the field, National Oil Corporation (NOC), succeeded to convince the guards protecting Sharara to switch sides to support the UN-backed Government of National Accord (GNA).
NOC stated earlier that the oilfield’s production would ramp up to 30,000 bpd as the very long shutdown caused damage. The field was estimated to hit full capacity within 90 days.
However, it had to be closed again when militants seized control of the site.
At the moment, the armed groups loyal to the Libyan National Army (LNA) is reportedly moving on to threaten the 75,000 bpd El Feel oilfield, which only restarted on June 7.
Two-thirds of Libya’s 800,000 bpd of normal crude oil production is still likely to remain offline as the LNA still controls the eastern terminals of Es Sider, Ras Lanuf, Brega, Zueitina and Marsa el Hariga.
The volatile situation would mean Libya’s comeback to export markets with 400,000 bpd of mostly Es Sider and Sharara grade crudes is still uncertain.
