State-owned National Oil Corp. said Libya's largest oil field Sharara restarted production after for almost five months the 300,000 b/d site was shut-in due to an oil blockade. As the 75,000 b/d El Feel oil field is also likely to open soon, Libyan production of 400,000 b/d could be online soon. Beginning at a capacity of 30,000 b/d, NOC said the Sharara field restarted on June 6.
Due to the damages resulted by the very long shutdown, production at the field is expected to return to full capacity within 90 days. On June 5, a key pipeline valves which connect the Zawiya export terminal and refinery and the Sharara and El Feel fields reopened.
Libya is currently exempted from the OPEC+ alliance historic cuts. Any new production could complicate efforts by the 23-member coalition to rebalance the market. Less than a tenth of what it was producing before January, Libyan crude production was around 70,000-80,000 b/d until a few days ago. Since September 2011, the output was the lowest level.
