Libyan crude output falls below 800,000 b/d

Libyan crude production has slipped below 800,000 b/d as maintenance in the east of the country compounds blockade-led shutdowns at four fields in the west.

Output is now around 780,000 b/d, down from 880,000 b/d in late December, according to a source at Libyan state-owned oil firm NOC. Current output is 30pc below Argus' estimate of Libya's average production in November.

Libyan oil flows have been sharply curtailed since 20 December, when branches of the Petroleum Facilities Guard (PFG), which protects NOC assets and infrastructure, shut down supply from the 300,000 b/d El Sharara and 90,000 b/d El Feel fields, along with the smaller Hamada field and the Wafa condensate project. This prompted NOC to declare force majeure restrictions on crude loadings from the Zawia and Mellitah terminals, which load the Esharara grade and Mellitah blend respectively. Mellitah is a mix of Wafa condensate and El Feel crude.

NOC's eastern subsidiary Waha Oil has since added to the losses, announcing plans to shut in 200,000 b/d of output while it carries out maintenance on a pipeline linking the Samah and Dahra fields to the Es Sider terminal. The company began conducting repairs on 2 January, with the work scheduled to last a week. It has completed the technical preparations to start reducing production and said it will begin "treating and cutting" the pipeline today. The 100,000 b/d cut in Libyan production since late December suggests that Waha Oil will reduce output gradually.

Waha Oil - a consortium between NOC, TotalEnergies and US firms ConocoPhillips and Hess - typically contributes 280,000-300,000 b/d to Libya's flagship grade Es Sider. The company's output has been frequently constrained by infrastructure problems in recent months, including a 70,000 b/d outage in late November. NOC has repeatedly complained that blockades and a lack of government funding have prevented it from carrying out critical maintenance on its assets.

By Ruxandra Iordache