Libya Said to Pump Over 1 Million B/d After Deadly Attack

TRIPOLI (Capital Markets in Africa) – Libya’s oil production is stable above 1 million barrels a day despite a deadly Islamic State attack on the offices of the country’s state energy company, according to a person with direct knowledge of the situation.

Oil fields across the OPEC member are producing as normal just two days after militants carried out an attack against the National Oil Co. headquarters in the capital Tripoli, leaving two employees dead, dozens wounded and considerable damage to the building. The person asked not to be identified because of lack of permission to speak to the media.

Although the attack didn’t affect the NOC’s crude output, it represents a symbolic blow to a rare embodiment of unity in a nation suffering from chaos and political divisions. Libyan oil facilities have been regularly blocked and attacked by armed groups but the NOC headquarters had so far been spared from the violence.

It also demonstrates that Islamic State is making a comeback, aided by conflicts among two rival administrations and dozens of militias as well as lack of security in Tripoli, where internationally recognized state bodies are concentrated.

Libya’s biggest oilfield, Sharara, is producing at its maximum capacity of 320,000 barrels a day. Output from Waha Oil Co. has also surpassed 320,000 barrels a day, according to people familiar who also asked not to be identified because of lack of authorization to speak to media.

Crude production across the Organization of Petroleum Exporting Countries increased in August to the highest level this year, according to a Bloomberg survey, as a recovery in Libyan output helped to offset a cut in Iranian exports due to U.S. sanctions. However, Libya remains an unreliable supplier as civil strife continues to disrupt the industry.

The group highlighted a range of risks to global oil demand growth in its September oil market report. It stated that Libya’s output in August averaged 926,000 barrels a day — an increase of 256,000 barrels a day from a month earlier. The group’s total production last month was 32.57 million barrels a day, up 278,000 barrels a day from July.

The NOC is the main revenue generator for Libya and remains in control of the country’s global oil sales, enduring more than seven years of conflict and chaos after the ouster of former leader Muammar al-Qaddafi. Last week, the company announced an 80 percent increase in its revenues for the first half of this year. Its January-to-July revenue reached $13.6 billion compared with $13 billion for the whole of 2017.

Source: Bloomberg Business News