Libya oil output resumes after months-long closure

Nation produced 1.22m barrels per day before January

The Libyan National Oil Company announced Friday the resumption of oil production and exports after a nearly six-month shutdown due to conflict dividing the country.

“The NOC has lifted force majeure on all oil exports from Libya,” the company said in a statement, adding that production will take time to return to previous levels.

“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” the statement said. Libya, which has the biggest proven reserves of crude in Africa, is torn between the rival powers of the Government of National Accord (GNA) based in Tripoli and Khalifa Haftar.

Since January, groups loyal to Haftar have been blocking the production and export of oil from the country’s most important fields and terminals, claiming they want a fair distribution of the oil revenues.

Force majeure

The NOC had invoked force majeure in response — a measure used in exceptional circumstances that allows the NOC to be exonerated from liability in the event of noncompliance with oil delivery contracts.

NOC chief Mustafa Sanalla welcomed the resumption of oil production, saying: “We are very glad finally to be able to take this important step to national recovery.”

A first ship was due to start loading crude from the oil port Al-Sidra in the east of the country, the statement added.

Libya produced 1.22 million barrels per day before January and had planned to increase production to 2.1 million bpd by 2024, the NOC said this week.