Libya Unification Deal On Shaky Ground, Exports Increase Still To Materialize

Rival governments in Libya have reached an initial deal they hope will resurect exports, giving the country a much needed revenue boost. But issues remain if Libya wishes to meet its ambitious 900,000 b/d output target by the end of the year.

The governments of the US and several European nations have issued a joint statement expressing their concern over potential damage to the Zueitina oil export terminal from fighting in the area. The conflict around Zueitina is a potential blow to an already fragile deal to re-open the terminal and two other oil export terminals on Libya’s oil crescent, Ras Lanuf and Es Sider. Exports from the Hariga terminal are also down after the terminal was shut-in during July and output ceased from the Sarir field, which ships crude via Hariga.

The governments of the UK, US, France, Germany, Spain and Italy issued a joint communique on 10 August calling on all parties to “abstain from any act of hostility and avoid all actions that could damage or disrupt energy infrastructure.” The internationally-recognized Government of National Accord (GNA) in Tripoli must work with the National Oil Corporation (NOC) to “relaunch oil production in order to rebuild Libya’s economy,” said the statement. (CONTINUED - 2559 WORDS)