Glencore Extends Major Libyan Oil Deal

Glencore Extends Major Libyan Oil Deal
The logo of commodities trader Glencore is pictured in front of the company’s headquarters in the Swiss town of Baar in this November 20, 2012, file photo. Glencore Xstrata’s head of aluminum, Gary Fegel, is set to leave the company, three sources said May 21, 2013, the first high-profile departure since commodity trading giant Glencore closed its purchase of miner Xstrata this month. REUTERS/Arnd Wiegmann/Files (SWITZERLAND – Tags: BUSINESS LOGO)

Swiss-based commodities giant Glencore has extended a deal with Libya’s National Oil Corporation (NOC) to be the sole marketer of one third of the country’s crude oil production, Reuters reported.

With the extended deal, Glencore is the exclusive trader of around 230,000b/d from the oil fields Sarir and Mesla, Oil Price informed.

The deal extends Glencore’s dominance over rivals such as Vitol and Trafigura in handling barrels from the North African country for a second year running.

Back in 2015, Glencore secured a deal with Libya’s NOC to buy half of the country’s then oil output of around 400,000b/d. That deal was for the only relatively stable onshore production in Libya at the time, with civil unrest and port blockades crippling the country’s oil production in recent years.

Lately, Libya has recovered its crude oil production to around 700,000b/d in January 2017. The country seeks to increase oil production to 1.25mb/d by the end of 2017 and 1.

6mb/d by 2022, the NOC’s Chairman, Mustafa Sanalla, said in January.

Mariana Somensi 890 Posts

Mariana holds a Journalism Bachelor Degree from the State University of Londrina, Brazil. The Brazilian journalist has 4 years of experience on the MENA region's affairs and over a year of experience on the oil and gas industry.

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