The Tripoli-based National Oil Corporation (NOC) issued a statement underlining its right to take legal action against any party that tries to export crude or products from Libya without its permission, reported Bloomberg.
The announcement comes after the Eastern NOC had reached a deal to export 2m barrels of oil to Egypt, Egypt Independent reported. The NOC told Bloomberg that it reserved “all rights to hold any party responsible for the entire legal liabilities and consequences arising thereof [crude export without its consent].”
Since the revolution that toppled Libya’s dictator Qaddafi, the country has been divided with the eastern government recognized by the international community, whereas traders such as Glencore Plc and Vitol Group recognized the NOC headquartered in the west of the country, in Tripoli.
According to Hellenic Shipping News, the crude market remains wary of the impact that the recently brokered Libyan peace deal will have on the market. The assumption is that the peace accord between the two rival factions may reopen shuttered oil fields and export terminals. Libyan oil production has declined by 80% since 2011.
Morgan Stanley bank is skeptical of a sustained recovery. Nonetheless, it added that an increase in the Libyan output of between 400-600,000b/d would feed the existing glut, and with the return of the Iranian oil, the re-balancing of the oil market might be further delayed until 2017.