Libyan oil exports collapsed during the revolt against Colonel Mu’ammar al-Qadhafi, but recovered to near capacity level soon after the overthrow of the regime. Since last summer, however, exports have once again declined substantially as protests and occupations shut down oil fields and export terminals, and although exports started to increase gradually in late September, they remain far below capacity and the political problems that caused the decline are unresolved (see p4). The government of Prime Minister ‘Ali Zeidan is doing its best to restore oil exports to near capacity level, but the difficulties of the transitional political period through which the country is passing appear to rule out any swift solution.

Libyan oil production fell from around 750,000 b/d in July to a mere 200,000 b/d for the first half of September. The country’s production capacity before the 2011 revolution was 1.6mn b/d. (CONTINUED - 647 WORDS)