Libya's NOC says five tankers to export crude after lifting force majeure

Libya's National Oil Corp. expects five tankers to load crude from oil terminals over July 19-July 21, after the new management of the state-owned company lifted force majeure following a nearly three-month closure.

"Preparations are now underway to export crude oil after the lifting of force majeure on terminals and oil fields," NOC said in a July 19 statement.

A tanker is scheduled to arrive at the Zueitina terminal to load 1 million barrels of Abu Attifel crude July 20, while a tanker will stop at the Es Sider terminal over July 19-20, the statement said. Two other tankers will arrive at the Ras Lanuf terminal over July 20-21, while another tanker will load 600,000 barrels of Brega crude during the period.

Libya, which replaced NOC's board July 14, is loading its first cargo of condensate since the lifting of force majeure from all ports and fields, though the legitimacy of the company's new leadership remains contested.

In a July 17 statement on its new Twitter account, NOC said the Italian flagged tanker Ibela had entered the Brega oil terminal to load the cargo.

New oil chief

NOC Chairman Farhat Bengdara, an ex-governor of the Central Bank of Libya, lifted force majeure July 15. Bengdara took his post following a showdown with former oil chief Mustafa Sanalla and his loyalists, who were evicted from NOC's Tripoli-based headquarters.

Libya's UN-backed Government of National Unity said July 14 it had installed Bengdara as chairman, while Sanalla has said his removal is illegal.

Sources in the country said some militias have refused to accept Bengdara's appointment, with tensions threatening to spill over into armed violence.

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

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 capacity of 1.2 million b/d.

Platts Analytics forecasts "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.