Libya's oil production plummets over 50% due to political standoff

On Thursday, more than half of Libya's oil production, approximately 700,000 barrels per day, was offline, and exports were suspended at several ports due to a political standoff between rival factions over control of the central bank and oil revenue.

Libya's National Oil Corp, which controls the country's oil resources, said on Thursday that the average oil output stood at 591,024 barrels on Wednesday Aug. 28. Libya pumped about 1.18 million bpd in July, News.Az reports citing Reuters.

Total losses in the past three days following the oilfields closures were at 1,504,733 barrels, worth about $120 million, NOC added.

The crisis over control of the Central Bank of Libya threatens a new bout of instability in the country, a major oil producer that is split between eastern and western factions that have drawn backing from Turkey and Russia.

Ports in Libya's hydrocarbon-rich Oil Crescent - Es Sidra, Brega, Zueitina and Ras Lanuf - halted export operations on Thursday, two engineers at the ports told Reuters.

Four vessels had loaded 600,000 barrels of oil each in the eastern region that accounts for the bulk of the country's exports - two at Es Sidra, one at Brega and one at Zueitina - and departed earlier on Thursday, the engineers said.

Output at oilfields controlled by Waha Oil Company, a subsidiary of the National Oil Corporation, has dropped to 150,000 barrels per day from 280,000 bpd and is expected to fall further, engineers told Reuters on Thursday.

Production has also been halted or reduced at the Sharara, Sarir, Abu Attifel, Amal and Nafoora fields, engineers have said.

That has taken roughly 700,000 bpd of oil output offline, according to Reuters calculations. Libya pumped about 1.18 million bpd in July.

News.Az