Sharara oil field closed since late Sunday

BENGHAZI, Libya, Oct 2, (RTRS): Libya’s giant Sharara oil field has been closed since late on Sunday, shutting off the production of more than 230,000 barrels per day (bpd), an engineer at the field and a Libyan oil source said.

Libya’s National Oil Corporation (NOC) said in a statement on Monday that it was “working towards a swift restart of production. At this moment, there are no plans to declare force majeure.”

They did not disclose the reason for the shutdown but a trading source said it was linked to a protest over salary demands.

Sharara has been affected by repeated shutdowns or partial shutdowns this year caused by blockades imposed by armed groups, security problems and protests.

Sharara, which has been producing up to 280,000 bpd is crucial to a recovery in Libya’s oil output that saw production rise to above 1 million bpd in June, more than four times its level in mid-2016.

The engineer said Sharara was pumping some 236,000 bpd before the latest shutdown.

Libya is exempt from OPEC-led oil production cuts, and the North African country’s revival has complicated the bloc’s efforts to bolster global prices.

Libya was producing more than 1.6 million bpd before a 2011 uprising led to a political and armed conflict that badly disrupted its oil industry.

Production continues to be hampered by budget constraints and infrastructure damage, as well as groups that trigger shutdowns to press local demands.