Oil Traders, Libya’s NOC Uncertain over Crude Export

Oil Traders, Libya’s NOC Uncertain over Crude Export

Oil traders who specialize in purchasing cargoes from Mediterranean ports have low confidence in the imminent resumption of shipments from two key Libyan terminals, even after a deal was struck in July to reopen the facilities, Bloomberg reported. A majority of traders interviewed by Bloomberg stated they did not expect a single cargo to be shipped from the ports by the end of September. Other said they were pessimistic any deals would last long enough to allow a resumption, while another believed that only a few cargoes would get shipped if there ports are reopened.

Similarly, Libya’s National Oil Corporation (NOC), which eyes to more than quadruple the country’s oil output by the end of 2016, remains uncertain over the July deal, the NOC Chief in Tripoli, Mustafa Sanalla, told Reuters.

Sanalla expressed his concerns about the deal and warned against the monetary stipulations offered to the Petroleum Facilities Guards (PFG). He concluded: “Let’s not forget that in the past there have been agreements with the Petroleum Facilities Guard; and all those promises have been broken before despite receiving a lot of revenue in hundreds of millions.”

Libya’s government signed a deal in July to end a blockade and restart exports from Ras Lanuf and Es Sider oil ports. As per the agreement, Libya is to pay an unspecified amount in salaries to armed forces led by Ibrahim al-Jathran who commands the PFG.


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