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For the first time since the end of August, Libya’s oil production exceeded 1 million barrels per day (bpd) on Sunday, after the warring factions reached a deal on how to elect the new leadership of the African OPEC member’s central bank.
Libya’s oil output stood at 1.067 million bpd on Sunday, anonymous sources with knowledge of the matter told Bloomberg on Monday.
Full-scale crude oil production resumed on Thursday, October 3, after more than a month of suspended output due to a political standoff between the eastern and western administrations in the North African OPEC producer.
Libya’s largest oilfield, Sharara, was pumping around 240,000 bpd as of Sunday, Bloomberg’s sources said.
The end of the Libyan crisis will lead to the return of a few hundred thousand barrels of crude per day to the market, which is fearing a supply shock from the Middle East on the brink of an all-out war.
Crude production at most Libyan oilfields was suspended for over a month after the country’s eastern and western administrations clashed over who should be governor of the Central Bank of Libya.
At the end of September, the rival factions reached an agreement in UN-mediated talks over the election of the Central Bank’s leadership, paving the way to restoring oil production and exports.
Libya, which pumped about 1.2 million bpd of oil before the latest political stalemate, was plunged into a deeper political crisis over the row about the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.
The internationally recognized government in the capital city in the west, Tripoli, was trying to replace Sadiq Al-Kabir, the governor of the Central Bank of Libya. This has led to the latest controversy between the Eastern and Western governments and political factions, threatening again to reduce Libya’s oil production and exports.
