Field producing third of Libya's oil resumes operation

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Mon, 12 Oct 2020 - 09:45 GMT

FILE PHOTO: A general view of the El Sharara oilfield, Libya December 3, 2014. REUTERS/Ismail Zitouny

FILE PHOTO: A general view of the El Sharara oilfield, Libya December 3, 2014. REUTERS/Ismail Zitouny

CAIRO – 11 October 2020: The Libyan National Oil Corporation (NOC) declared Sunday the resumption of the operation of Al Sharara oil field located southwestern the country lifting force majeure.

 

The field operated by the Akakus Oil Operations (AOO) produces the third of Libya's oil production. The Libya Observer reported that Al Sharara is expected to produce 40,000 bpd.

 

The NOC's decision follows an agreement with Commander-in-Chief of the Libyan National Army (LNA) Khalifa Haftar that the Petroleum Facilities Guard would eliminate all impediments and ensure the absence of any security breaches.

 

The reserves of Al Sharara are estimated at three billion barrels, according to Sky News Arabia.

 

Talks among Libyan factions on the security measures necessary to resume oil production were held early in October in Egypt's Hurghada.  

 

On September 18, Haftar declared that all oil facilities across Libya would resume operations. It is noted that the major oil fields and ports lie in the territories held by the LNA.

 

Spokesperson of the LNA Ahmed al-Mesmary had stated that consultations took place between the representatives of the LNA and Member of Libya's Presidential Council Ahmed Maitiq, as reported by Sky News Arabic. They agreed on forming a technical committee that supervises the oil revenues and the fair distribution of resources. Maitiq said that the committee's work will last for three months.

 

Libyan tribes announced the closure of oil ports and fields in January as the revenues were used by the GNA to pay militants. Early in July, the tribes declared that oil facilities would resume operations. However, the LNA announced on July 11 that such facilities would remain closed until the demands of the Libyan people on dismantling militias are fulfilled. The Libyan National Oil Corporation (NCO) announced that the value of revenues lost until present is $8.2 billion.

 

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