Libya’s National Oil Corporation (NOC) said that pipelines leading from the western fields of Sharara and El Feel had been reopened after a two-year blockade, paving the way for a major boost to production, Reuters reported. This comes one day after reports surfaced that production from Sharara and El Feel remained halted.
According to NOC’s statement, pipelines connecting the Sharara oil field to Zawiya refinery, and the El-Feel deposit to the Mellitah energy complex. The renewed flow from the fields will help boost the country’s oil production by 175,000b/d within one month and 270,000b/d within three months, informed Bloomberg.
The deal to reopen valves on pipelines from Sharara and El Feel in the northern town of Rayana had initially been announced earlier by a local faction of Libya’s Petroleum Facilities Guard (PFG). But officials at El Feel said a separate group of guards, from the Tebu ethnic group, were preventing a restart there.
This boost in Libyan oil production would more than outweigh production cuts that Iraq and Algeria collectively pledged after the agreement to curb output by members of the Organization of Petroleum Exporting Countries (OPEC). Therefore, a speedy recovery in Libyan output could slow OPEC efforts to rebalance the market and ease a global supply glut. Libya and Nigeria were exempted from a recent OPEC pledge to cut oil production by around 1.8mb/d.