Libyan Oil Fields Reopened After Central Bank Dispute Resolved
Libya’s National Oil Corp (NOC) and eastern-based administration have announced the reopening of all oil fields and export terminals following the resolution of a dispute over the leadership of the central bank. This development could lead to a significant increase in oil production for the OPEC member. NOC stated that force majeure has been lifted at all fields and terminals as of October 3.
The formal security assessment has confirmed that NOC can resume operations at the Sharara, El-Feel, and Es Sider oil fields, allowing for exporting operations to resume. Discussions between NOC’s chief and the new central bank governor focused on financing projects to increase production and compensate for revenue deficits caused by closures and declining oil prices.
Libya’s oil output has faced disruptions due to political divisions since 2014. The country is split between the U.N.-recognized government in the west and a rival administration in the east. Before the recent closures at key oil fields, Libya was producing 1.2 million barrels of crude per day and exporting most of it.
Technical issues at the El-Feel oil field have been causing production delays, but efforts are underway to resolve them. Production at the Sharara field has also resumed, albeit not at full capacity. The agreement to appoint a new central bank governor has paved the way for normal oil production and export operations to resume.
The United Nations has welcomed the lifting of force majeure on oil production in Libya and emphasized the importance of channeling oil revenues through the appropriate institutional framework. It is crucial for the country to manage its oil resources efficiently and transparently for its financial stability and development.
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Sofia Martins graduated from the Technical University of Madrid with a degree in Agronomy, focusing on plant nutrition and soil science. She has a deep interest in sustainable fertilizer management and works to develop eco-friendly solutions that optimize plant growth while minimizing nutrient runoff. Sofia is a dedicated researcher and has published several articles on sustainable plant nutrition practices.