Libyan militia group says blockades to continue

The Libyan National Army (LNA) said it will maintain oil export blockades across Libya, raising concerns that state-owned NOC's 10 July decision to lift force majeure restrictions on export nationwide could prove short-lived.

The militia group called for Libya's Central Bank to publicise its accounts of the spending of oil revenues it receives from NOC, urging transparency to ensure the payments do not finance mercenary forces. The ports will remain closed until the demands of the Libyan people are implemented, it said in a statement.

The LNA's position darkens the outlook for Libya's recovering oil sector, which saw a breakthrough on 10 July when NOC lifted force majeure from all ports, and the Vitol-fixed Kriti Bastion picked up a cargo of crude from storage at the El Sider terminal.

The Es Sider, Ras Lanuf, Zueitina, Marsa el-Brega and Marsa el-Hariga terminals were shut down in mid-January by steadfast LNA allies, the Petroleum Facilities Guard (PFG). Es Sider was green-lit to exit force majeure on 8 July, but the PFG prevented the first ship that attempted to load — the Unipec-chartered Delta Ocean — from carrying out operations. Tracking data from oil analytics firm Vortexa show that the Delta Ocean has since headed to the Mellitah terminal in west Libya, and is likely to load Wafa condensate.

A Libyan source said that 300,000 b/d El Sharara and 130,000 b/d-capacity El Feel in western Libya were also allowed to resume production on 10 July, although it is unclear if the assets have returned online. The two fields were shut down in late January by tribal factions, and were infiltrated by foreign mercenaries in June, when NOC fleetingly attempted to begin flows.

The Es Sider port restart also pushed NOC subsidiary Waha Oil to resume production at the Gallo field on 10 July. Production operations were still ongoing at the company as of this morning, according to a Waha Oil source. Its fields feed into the Es Sider crude grade.

By Ruxandra Iordache