Libya’s Oil Exports Crash to 400,000 Bpd as Political Row Stalls Output

Crude oil exports from Libya have crumbled to around 400,000 barrels per day (bpd) this month from 1 million bpd in August as the political standoff in OPEC’s North African producer continues, Reuters reported on Tuesday, citing data from ports and ship-tracking services.

Most of Libya’s oil exports this month were headed to nearby Italy and Greece, while some cargoes traveled to China and Canada, according to data from oil analytics firm Kpler and port agents quoted by Reuters.

Libya’s National Oil Corporation (NOC) has canceled some cargoes, although it has not declared force majeure on all exports from the country. A source at NOC told Reuters earlier this month that the company allowed some tankers to dock at Libyan ports and load crude from storage, in order to avoid fines if the shipments fail to fulfill contractual obligations.

The latest crisis in Libya erupted at the end of August.

Part of Libya’s production and exports were halted due to a political standoff over the leadership of the OPEC producer’s central bank.

Oil production at several Libyan oilfields was halted on August 27 after the rival government in the east announced a stop to all oil production and exports from Libya.

Libya, which pumped about 1.2 million bpd of oil before the halt, was plunged into a deeper political crisis over the row about the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.

The internationally recognized government in the capital city in the west, Tripoli, was trying to replace Sadiq Al-Kabir, the governor of the Central Bank of Libya. This has led to the latest controversy between the Eastern and Western governments and political factions, threatening again to reduce Libya’s oil production and exports.

Earlier this month, Libya’s feuding political factions reached an agreement on the mechanism and timelines for appointing the Central Bank Governor and Board of Directors in consultations hosted by the United Nations Support Mission in Libya (UNSMIL).

The situation, however, remains uncertain as progress in talks has stalled.