Libya’s crude oil exports have dropped dramatically, falling to 194,000 barrels per day (bpd) last week. This represents an 81% decrease compared to the previous week, according to data from Kpler reported by Reuters.
Export levels last week were far below the 1 million bpd averaged in previous weeks, the data revealed. Libya’s National Oil Corporation (NOC) has canceled some cargoes but has not declared force majeure on all exports. Instead, NOC has only declared force majeure on specific cargoes, according to sources familiar with the situation.
An NOC source informed Reuters that the company allowed some tankers to dock at Libyan ports and load crude from storage to avoid penalties for failing to meet contractual obligations.
The current crisis in Libya began in late August. Production and exports were disrupted due to a political standoff over the leadership of Libya’s Central Bank, a key institution for the country’s oil revenue.
On August 27, oil production at several fields was halted when the rival eastern government announced a suspension of all oil production and exports. Libya, which typically produces around 1.2 million bpd, is facing a deeper political crisis over the Central Bank leadership dispute.
The internationally recognized government in Tripoli, located in the west, sought to replace Sadiq Al-Kabir, the governor of the Central Bank of Libya. This move has fueled further conflict between the eastern and western governments and political factions, raising concerns about further reductions in oil production and exports.
Last week, Libya’s conflicting political factions reached an agreement on the process and timeline for appointing the Central Bank Governor and Board of Directors, with the United Nations Support Mission in Libya (UNSMIL) facilitating the discussions.
Despite this progress, the situation remains uncertain. UNSMIL announced on Tuesday that it would continue to facilitate talks to resolve the Central Bank crisis, with meetings scheduled to take place at its Tripoli headquarters on Wednesday.