Rebuilding derelict storage capacity can’t come soon enough for Libya, as stormy weather forced it to shut down key export terminals, and cut production at the end of November and again this week.
And with winter only just begun, the next few months may present a stormy outlook for Libyan output. Elsewhere, any export terminal shut-in would lead storage tanks to drink up crude to ship another day. But not in Libya. Years of fighting since the 2011 revolution have left storage infrastructure crippled (MEES, 7 September).
NOC chief Mustafa Sanallah said ahead of this week’s Opec meeting that “bad weather” had forced the shutdown of most export terminals for the previous 10 days.
Mr Sanallah said Libyan output had declined 300,000 b/d in the first week of December to 900,000 b/d as a result. The more this continues, the further NOC will have to slash...