Libya's NOC says crude oil output has reached 860,000 b/d

Libya's crude oil production has reached 860,000 b/d with a target of 1.2 million b/d in two weeks, National Oil Corp. said on Twitter and Facebook on July 23.

Under new management, state-owned NOC announced July 15 the lifting of force majeure on all oil terminals and fields, a day after the Tripoli-based GNU replaced long-serving chairman Mustafa Sanalla with ex-central bank governor Farhat Bengdara. Production has since jumped more than 50% from 560,000 b/d seen before the force majeure.

"The NOC is striving to increase production and bring it back to its normal rates of 1.2 million b/d in two weeks," the company said on the social media posts.

Mohamed Oun, Libyan oil minister in the UN-backed Government of National Unity, had told local TV on July 22 that he expected to reach 1.2 million b/d in 10 days.

Libya's oil sector has been under severe political turmoil, exacerbating a tight market, with various groups seeking control of NOC and its revenue.

Prior to Sanalla's ouster, NOC said June 30 Libyan crude exports had ranged from 365,000 b/d to 409,000 b/d, a decrease of as much as 865,000 b/d from normal rates, as it declared force majeure on loadings out of the Es Sider and Ras Lanuf terminals, as well as production at the El-Feel oil field, following previous closures of the Brega and Zueitina terminals.

Crude production reached a two-year low of 650,000 b/d in June, according to the latest Platts survey of OPEC+ output by S&P Global Commodity Insights, against a capacity of 1.2 million b/d.

Platts Analytics forecast "600,000 b/d of average July output, 200,000 b/d above current levels and half of effective capacity, but uncertainty persists," it said in a July 14 note.

Libya's eastern Gulf of Sirte includes four main oil export terminals with a total capacity of 630,000 b/d -- Es Sider at 250,000 b/d, Ras Lanuf 200,000 b/d, Brega 90,000 b/d and Zueitina 90,000 b/d.

Libya holds the largest crude reserves in Africa and exports mainly light-sweet crude grades, such as Brega, Es Sider and Sharara. Its main export markets are in southern Europe and China.