Libya: Sharara oil field resumes production after pipeline blockade

Libya's National Oil Corporation hopes that output will be boosted by 270,000 barrels per day over the three next months.

MENA

2 min read

The New Arab

22 December, 2016

Sharara closed in November 2014 and El Feel in April 2015 due to the blockade[Getty]

Libya's Sharara oil field reached production levels of around 58,000 barrels on Wednesday following the lifting of a two-year pipeline blockade, the country's National Oil Corporation [NOC] said.

The corporation hopes that national output will be boosted by 270,000 barrels per day [bpd] over the three next months.

"The NOC gave instructions to operating companies to restart production from the fields and to carry out the necessary testing and maintenance works," the NOC said in a statement.

"Production at Sharara reached 58,000 on the first day."

The reopening of the oil field was marked with scenes of jubilation, as videos posted to social media showed workers at the site shouting as gas flares were relit.

The nearby El Feel oil field also reopened. According to an engineer who spoke to Reuters, workers were ready to begin production on Wednesday.

Sharara closed in November 2014 and El Feel in April 2015 due to the blockade. Prior to this, production had also ceased due to interference by armed factions.

Despite the reopening marking a positive turn for Libya's oil industry, a swift recovery for the country's oil output may have an adverse impact on the Organization of the Petroleum Exporting Countries' [OPEC] moves to increase prices by cutting supply.

OPEC recently pledged to reduce production by 1.8 million bpd, however Nigeria and Libya were exempted from this.

Meanwhile, Libya's continued state of unrest may still disrupt oil production in the country that has descended into turmoil since the overthrow on Muammar Gaddafi in 2011.

Libya recently doubled its oil output to 600,000 bpd following the seizure of several key ports in Libya's Oil Crescent by forces loyal to General Khalifa Haftar.

Despite the recent increase, national oil production still lags far behind the 1.6 million bpd Libya produced prior to 2011.