Page 18 - DMEA Week 23

DMEA REFINING DMEA

NOC has been trying to
resume oil shipments to
the Zawiya refinery.

Libya’s NOC says El-Feel is back online

LIBYA LIBYA’S NOC says El-Feel is back online. Shar- of the corporation and considers their entry into
ara field also resumes production but shuts down the field in this way to be a serious threat to the
again after armed attack health of workers.”
Within the last week, Libya’s National Oil NOC had said on June 8 that Sharara had
Corp. (NOC) has succeeded in resuming resumed production at the rate of 30,000 bpd
development operations at El-Feel, one of the and would reach full capacity within 90 days. It
country’s largest oilfields, but has also suffered is not yet clear whether the company still hopes
setbacks at Sharara, another major site in the to meet this deadline.
south-western part of the country. Nevertheless, El-Feel has reportedly begun
According to several separate company state- producing again at the rate of 12,000 bpd and is
ments, NOC brought Sharara back on line on due to reach full capacity within 14 days.
June 6 and was able to do the same at El-Feel on NOC chairman Mustafa Sanalla stated on
June 7. Both fields have been idle since mid-Jan- June 8 that his company had lifted its declaration
uary, when a blockade mounted by Khalifa of force majeure on the two fields. As of June 9,
Haftar’s Libyan National Army (LNA) shut down though, NOC has declared force majeure on
much of the country’s petroleum industry and operations at Sharara once again. This move
began a process that dragged crude output levels could affect plans for Libya to restart oil exports,
down by more than 800,000 bpd. The blockade which have remained on hold for several months.
lasted for 142 days and caused Libya to incur It could also have a negative impact on efforts
nearly $5.27bn worth of losses, NOC reported. to resume crude shipments to the Az-Zawiya
The company had hoped to use the two oil- refinery. Sanalla had said on June 8 that the
fields to bring production levels back up. It will plant was once again receiving feedstock and
not be able to reach full capacity immediately, would “resume its operations to produce fuel
though, owing to the damage the sites sustained for domestic use.” He added: “This will reduce
during the shutdown. Together, the fields are pressure on the budget allocated to import fuel.”
capable of turning out around 390,000 barrels Both El-Feel and Sharara are located in a sec-
per day (bpd) of oil. tion of south-western Libya that was seized by
But on June 9, NOC said that armed troops LNA forces in January. In recent weeks, though,
under the command of Mohamed Khalifa, the the Tripoli-based Government of National
head of a group known as the Petroleum Facili- Accord (GNA) has regained control over the ter-
ties Guard (PFG), had stormed the Sharara field. ritory. Its successes could set the stage for NOC
The troops forced civilian workers at the site to to restore production, which stood at more than
halt production, thereby committing “a serious 900,000 bpd as of the beginning of the year.
crime that amounts to treachery against the Lib- Such an outcome would be good for Libya,
yan people and the national economy,” it said. but it could also create problems for the
“The shutdown of production will cost the OPEC+ group. OPEC and its allies recently
treasury further losses and will lead to new tech- agreed to extend production limits by another
nical damages,” it added. “NOC also expresses its month, until the end of July, in the hope of
concern about the breach by this armed group pushing oil prices up. Their efforts might falter
of the strict coronavirus [COVID-19] pandemic if large volumes of Libyan crude start to enter
control programme followed in all the facilities the market.™

P18 www. NEWSBASE .com Week 23 11•June•2020