Libya’s crude oil exports have sharply fallen to around 400,000 barrels per day (bpd) this month, down from 1 million bpd in August, as a political standoff continues to disrupt operations in the North African OPEC member, according to a Reuters report citing port data and ship-tracking services.
This month, most of Libya’s oil exports have been directed toward nearby Italy and Greece, with some shipments also reaching China and Canada, as reported by oil analytics firm Kpler and port agents. The National Oil Corporation (NOC) has canceled several cargoes but has not declared force majeure on all exports from the country. A source within the NOC indicated that some tankers were allowed to dock at Libyan ports to load crude from storage, helping to avoid fines for failing to meet contractual obligations.
The current crisis in Libya began at the end of August. Production and exports were significantly impacted due to a political deadlock regarding the leadership of the Central Bank of Libya. On August 27, oil production at various oilfields was halted after the rival eastern government declared a stop to all oil operations.
Before the halt, Libya was producing approximately 1.2 million bpd. The political turmoil escalated over disputes surrounding the Central Bank’s leadership, which is the sole internationally recognized authority for Libya’s oil revenues. The internationally recognized government based in Tripoli has attempted to replace Sadiq Al-Kabir, the governor of the Central Bank, leading to renewed tensions between eastern and western political factions. This ongoing conflict threatens to further diminish Libya’s oil production and exports.
Despite these challenges, Libya’s warring political factions recently reached an agreement regarding the appointment process and timelines for the Central Bank Governor and Board of Directors, facilitated by the United Nations Support Mission in Libya (UNSMIL). However, the situation remains precarious, with progress in negotiations currently stalled.
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