LIBYA'S OIL PRODUCTION DOWN 400 TBD
PLATTS - Libyan crude production has fallen around 400,000 b/d -- or nearly halved -- due to militia attacks on the eastern oil terminals of Ras Lanuf and Es Sider, the head of the countrys National Oil Corp. said Tuesday.
Militants are still present at the two terminals "for sure," hampering NOC's efforts to extinguish the fires raging in Ras Lanuf, where two crude storage tanks have been destroyed, Mustafa Sanalla said on arrival in Vienna, ahead of Friday's OPEC meeting.
"We are in a difficult situation, unfortunately," Sanalla told reporters. "We look to put out the fire [and] stabilize the situation."Libyan output was 950,000 b/d in May, before the armed clashes between rival militia groups at the terminals last week, according to the latest S&P Global Platts OPEC survey.
NOC declared force majeure Thursday on loadings from Es Sider and Ras Lanuf, which had been set to load around 420,000 b/d in June.
Ras Lanuf had five operational storage tanks, storing up to 950,000 barrels. The loss of the two tanks has reduced its total capacity by 400,000 barrels to just 550,000 barrels, NOC said Monday.
Along with Brega and Zueitina, the Ras Lanuf and Es Sider terminals serve the Sirte basin, a collection of oil and gas fields in central and eastern Libya that account for around 650,000 b/d, roughly two-thirds of the country's total production.
OPEC meets Friday to decide the future of its production cut agreement. Libya was exempted from the cuts when the deal went into force in January 2017, but for 2018, it was given a loose cap of around 1 million b/d.
Sanalla said the recent fighting in Libya that resulted in a production drop was like "a favor for the other members," some of whom are seeking to raise quotas under the deal.
Asked if Libya would again seek an exemption from the cuts going forward, Sanalla said: "What exemption now? We are losing around 400,000 b/d" due to the force majeures.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.