Close Close

Portfolio > Economy & Markets

Libya’s Oil Output Continues to Fall

Your article was successfully shared with the contacts you provided.

The Hamada oil field in Libya, which is southwest of Tripoli, has ceased to operate, and oil fields in the eastern part of the country are only producing at about half their normal rate, according to an official for Agoco, a Libyan state-owned oil company.

Reuters reported that Hassan Bulifa, who is a member of Agoco’s management board, said, “The three fields in the east [Sarir, Nafoora andMisla] are producing at about half of normal capacity. Hamada is not in operation but we hope to restore production soon.” Workers from Hamada, he said, had been sent home for their own safety.

He added that none of the four fields are under the control of Muammar Ghaddafi.

Hamada oil is normally routed through a terminal at Zawiyah, but the city, about 30 miles from Tripoli, has been beset by clashes between government and rebel forces. Currently it is under rebel control.

Oil is still being delivered from Libya, according to Bulifa, who said that a tanker in Tobruk was in the process of loading, with another already in place to take on the next load. He said in the report, “Despite all that is happening, we do not want to disrupt shipments. We need to ensure that all contracts and treaties are honored. We are trying to ensure a normal schedule. Things are safe in Tobruk for now so we are trying to ensure normal operations.”

More on this topic

He added that there was a refinery in Tobruk that had a capacity of 20,000 barrels per day, which was working in an effort to keep the Tobruk power station supplied. "One million barrels for Sinopec are currently loading and the tanker should be ready to leave within 36 hours," he said in the report; the second tanker in line is scheduled for a load of 700,000 barrels to go to Austrian company OMV, one of the largest integrated oil and gas groups in central Europe.