Libya blocks oil production in largest area

Production in Libya’s Sharara oil field, seen here in 2014, has almost ceased since early January.


Ismail Zitouni / Reuters

Production in Libya’s largest oilfield resumed on Sunday afternoon, Libyan officials said, a move that could increase the country’s overall production after a rapid shutdown and add a glut of oil to world markets Which has kept prices low.

Libya’s central government and rebel commander Khalifa Haapar agreed to lift the nine-month oil blockade last month after settling a dispute over oil revenue distribution. The country’s oil production has increased from about 100,000 barrels a day to 300,000 barrels per day in the last two weeks.

Officials said Sharara could contribute an additional 300,000 barrels a day. Its initial production was 27,000 barrels a day, as on Sunday. Production in the area has almost ceased since early January.

Libya’s slowdown of shutdown production has already increased pressure on oil prices, and it is a debate in Saudi Arabia on whether to boost production from next year.

Libya, one of the world’s largest producers, pumped some 1.3 million barrels a day before authorities stalled production before the deadlock.

Write [email protected] at Benoit Faucon

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