Libyan oil output near pre-crisis levels at 1.13 mil b/d: NOC

Libyan oil output recovered to 1.13 million b/d on Oct. 8, the country's state oil company said, days after the conclusion of a political crisis that had stoked an oil and gas shutdown.

In a statement on its X account, the Libyan National Oil Corp. said production of crude and condensates in the 24 hours to 1230 GMT had reached 1,133,133 barrels. Natural gas production in the period was 207,000 barrels of oil equivalent, the NOC said.

"This recovery comes just days after the lifting of the force majeure, as a result of the guidance from the Chairman and Board members of the NOC, as well as the combined efforts of the employees of the NOC and oil companies," it said. “Production rates are expected to return to pre-closure levels within the next few days.”

Libya is capable of producing around 1.2 million b/d of crude but saw its output fall by as much as 750,000 b/d from late August due to a dispute over the leadership of the country’s powerful central bank, which receives and distributes its lifeblood oil revenues.

The country’s eastern political faction in Benghazi ordered fields and ports to close in response to efforts by the western government in Tripoli to unseat central bank governor Siddiq al-Kabir.

On Oct. 3, Naji Essa, a former advisor to Kabir, was confirmed as the bank’s new governor by chambers in Libya’s east and west. He is expected to name a new board in the coming days. Kabir fled the country in early September fearing militia violence.

S&P Global Commodity Insights reported Oct. 7 that production had returned at key fields but remained below capacity. Sharara -- Libya’s biggest field at up to 300,000 b/d -- was pumping just 25,000 b/d of crude, sources said, due to maintenance issues.

Sharara is operated by a joint venture between the NOC and a number of IOCs. Repsol and TotalEnergies, two of the partners, did not respond to requests for comment.

Meanwhile, Agoco, an NOC subsidiary, was producing just 185,000 b/d at its Sarir and Mesla fields -- below company capacity of almost 280,000 b/d -- due to a fault in an associated power station, sources told Commodity Insights. Agoco did not respond to a comment request.

A bright spark, however, was the El-Feel field, which was producing close to 90,000 b/d on Oct. 7, sources familiar with the matter said, right at the top end of its capacity.

In the hours after the eastern faction ended the blockade, following Essa’s appointment, the NOC said that force majeure at Sharara and El-Feel had been lifted.

S&P Global Commodities at Sea data does not yet show a significant uptick in crude exports following the lifting of the oil shutdown. Libya exported 2.6 million barrels of crude on Oct. 6 and 600,000 barrels on Oct. 7, CAS data showed.

Light, sweet Libyan crudes are a key feedstock for refiners in the Mediterranean and Northwest Europe.

Libya boasts some of Africa’s biggest oil and gas reserves but has seen scant stability since the fall of Libyan leader Moammar Qadhafi in 2011, with political actors frequently disrupting oil production.