Libya’s NOC Signs Agreement to Reopen Oil Ports

Libya’s NOC Signs Agreement to Reopen Oil Ports

The Libyan UN-backed authorities have reached an agreement with the Petroleum Facilities Guards (PFG), an armed brigade monitoring the two main oil ports Ras Lanuf and Es Sider, to bring an end to a blockade and restart crude exports, according to Al Jazeera. The Libyan Presidential Council Deputy, Mousa Alkouni, signed the deal with the commander of the PFG Ibrahim al-Jathran

Restoring the two oil ports will potentially boast Libya’s crude exports by 600,000b/d. In order for shipments to return to full capacity, the terminals require repairs to rectify damages  caused by fighting and stoppage. The agreement entails the payment of an indefinite amount in unpaid salaries to al-Jathran’s forces.

Gulf News informed that the PFG specified no exact date for the reopening of the ports, while Al Jazeera quoted Alkouni as saying that the resumption depends on technical aspects and oil ports are scheduled to reopen already in mid August.

The  state-run National Oil Corporation (NOC) estimates that the ports will struggle to get beyond 100,000 b/d in the near term. In addition, NOC Chairman, Mustafa Sanalla, voiced his reservations to dealing with al-Jathran over fears of further disruptions encouraged by monetary rewards as agreed upon in the July deal.

The terminals were shut down in late 2014 in an attempt to deter corruptions in oil sales.


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