Libya’s Oil Production Resumes After Two-Month Halt Amid Political Crisis
In a significant development, Libya’s state oil company, the National Oil Corporation (NOC), has announced that it is resuming full oil production, nearly two months after halting operations at two of its main fields. The move comes as the country is still reeling from a political crisis that has been ongoing since August.
According to the NOC, production will resume at the Sharara and El-Feel oil fields, as well as exports from Es Sider, the country’s largest port. The company had previously declared “force majeure,” a legal maneuver that allows a company to walk away from its contracts due to extraordinary circumstances.
The shutdown was blamed on the Fezzan Movement, a local protest group, which had been demanding greater autonomy for the region. However, the NOC has confirmed that the review of the force majeure situation has been completed, and the company is now able to resume crude oil production operations and export operations to its customers.
The resumption of oil production is a significant development for Libya, which produces over 1.2 million barrels of oil per day. The country’s largest field, Sharara, produces up to 300,000 barrels per day.
The oil-rich country has been gripped by political turmoil since a NATO-backed uprising toppled and killed Muammar Gaddafi in 2011. Since then, Libya has been divided between rival administrations in the east and west, each backed by militias and foreign governments.
The conflict has had a significant impact on the country’s economy, with the central bank, which distributes the country’s oil revenues, being a key point of contention. In August, the United Nations warned that the country was on the verge of even greater instability due to the conflict. However, the problem was resolved in recent days when parliament appointed a new governor to the bank.
The resumption of oil production is a welcome development for Libya, which has been struggling to maintain stability in the face of political turmoil. The country’s oil industry is a significant source of revenue, and the resumption of production will help to stabilize the economy and provide a much-needed boost to the country’s finances.
