Libya National Oil Corporation on Friday lifted its force majeure on all oil exports after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep production low.
The first tanker to load is the Kriti Bastion at Es Sider oil port, NOC added in a statement, and said it would “take a long time” to increase output due to “the significant damage to reservoirs and infrastructure” caused by the blockade.
“We are very glad finally to be able to take this important step to national recovery, and I wish to thank all the parties to recent discussions for helping to bring about this successful outcome,” NOC Chairman Mustafa Sanalla said. “This should be recognised as an important moment of common national purpose to build on to bring lasting peace and stability to the country.”
“For NOC, the work has just started. Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done. We also must take steps to ensure Libya’s oil production is never again held to ransom.” Sanalla added.
“On the top of the $6.5 billion in lost production we as a nation have suffered, NOC faces huge extra costs to repair infrastructure damage. The costs of repairing the pipeline network and surface equipment and of well workovers will run to the billions of dinars.”