Libya’s state-owned oil company National Oil Corporation (NOC), which oversees the majority of the country's oil resources, officially lifted force majeure on oil production and exports yesterday.
Crude oil production in the Sharara and El-feel oilfields, two of the largest Libyan oil production sites, and exports from Essider have resumed, NOC said in a statement.
“National Oil Corporation announces lifting of force majeure on all Libyan crude oil fields and ports effective Thursday, October 3, 2024,” it stated.
The OPEC producer was facing political turmoil due to a dispute over the leadership of its central bank, the only globally acknowledged depository of its oil revenues. The conflict forced the NOC to declare a force majeure on key oil producing sites.
Last month, a United Nations (UN)-brokered deal in Libya united the rival eastern and western administrations, after delegates from both administrations mutually decided to appoint new leaders for the country’s central bank, the United Nations Support Mission in Libya (UNSMIL) said.
The North African country has a production capacity of about 1.2 million b/d, according to OPEC. “The nation’s eastern government is now allowing all fields and export terminals to resume operations,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.
The news has added some downward pressure on oil prices as it “comes as OPEC+ plans to proceed with its production hikes in December,” Hynes said.