Page 10 - AfrOil Week 17 2021

AfrOil PERFORMANCE AfrOil

NOC lifts force majeure, clearing the

way for rebound in Libyan oil output

LIBYA LIBYAN oil production looks set to rebound, or rivalries.” It also stated that it was committed
following the resumption of exports via the to “continuing its technical, non-political role”
250,000 barrels per day (bpd) Marsa el-Hariga and upholding its “neutral, technocratic man-
terminal on the Mediterranean coast. date” as the only legitimate operator of the coun-
Output levels sank below 1mn bpd last week try’s hydrocarbon reserves.
amidst a dispute between National Oil Corp. However, it also urged the interim govern-
(NOC) and the country’s new Oil and Gas Min- ment to deliver budget funds in a timely manner.
istry over this year’s budget. The row came to “NOC affirms the urgent need for the country’s
a head on April 19, when NOC declared force political elites to understand the especially
majeure on exports via Mersa el-Hariga in significant stage through which the country is
response to an announcement by its subsidiary passing, and the need to distance this vital sec-
Arabian Gulf Oil Co. (AGOCO) that it was sus- tor from political disputes, while at the same
pending production due to its lack of funds. time reiterating the importance of [covering]
AGOCO had said on April 18 that it had not the sector’s budgets in accordance with the law
received any budgetary funding since last Sep- and with the official timetable, rather than any
tember. It did so several days after another NOC other irregular or illegal arrangement,” it said in
affiliate, Sirte Oil Co. (SOC), said it did not have its statement. ™
the money to sustain production operations.
The ministry responded quickly to NOC’s
declaration and agreed to settle the matter by
transferring LYD1.048bn ($234mn) to the com-
pany. On April 21, it reported that it had already
delivered nearly half of that sum, or LYD500mn
($111.64mn), to NOC.
Then on April 26 NOC lifted force majeure.
Even so, by this time, Libyan oil production,
which averaged 1.19-1.25mn bpd in March, had
already gone down by more than 200,000 bpd as
a result of the suspension of operations at fields
operated by AGOCO and SOC.
NOC has stressed that declaration of force
majeure was not politically motivated – that
is, not directed at any particular stakeholders
within Libya’s current interim government. In
a statement dated April 23, it said it “[affirmed]
its neutrality as a pan-Libyan actor and its com-
plete independence from all conflicts, disputes NOC’s AGOCO subsidiary operates Sarir and several other oilfields (AGOCO)

NNPC’s refineries remain idle for 19 months

NIGERIA NIGERIA’S state-owned refineries have now about NNPC’s capabilities as a refinery opera-
reached 19 consecutive months without pro- tor. Meanwhile, with work yet to begin to reha-
cessing any crude, according to the latest data bilitate the units to their combined throughput
published by owner and operator Nigerian capacity of 445,000 barrels per day (bpd) and
National Petroleum Corp. (NNPC). the company’s claims that reduced operations
During the period of July 2019 until January are “attributed to the ongoing revamping of the
2021, the four state-owned facilities – two at Port refineries”, there is scope for further scrutiny.
Harcourt, one at Warri and one at Kaduna – The Port Harcourt complex is comprised of
have had a utilisation rate of 0%, costing NNPC two units, built roughly 25 years apart, with joint
more than $460mn. total capacity of 210,000 bpd, making it Nigeria’s
The news gives more weight to concerns largest refinery.

P10 www. NEWSBASE .com Week 17 28•April•2021