MOSCOW (MRC) -- Libya's state-owned National Oil Corp. said Oct. 11 it lifted force majeure on Sharara, the country's top producing oil field, and restarted pumping as the OPEC producer continues to restore it energy industry following the Libyan National Army's end of a nine-month blockade in September, reported S&P Global.
NOC received assurances from the Petroleum Facilities Guard, linked to the self-styled LNA, that it will end security violations and remove hurdles to allow the national oil company to lift force majeure and resume operations at the field, the company said in a statement.
NOC didn't disclose the current level of production at Sharara, which can pump as much as 300,000 b/d.
Libya was producing around 300,000 b/d at the end of last week as a handful of fields in the eastern Sirte Basin have restarted, but some of the country's larger oil fields and terminals remained shut on security and technical grounds, several industry and trading sources told S&P Global Platts on Oct. 9.
The OPEC member has managed to increase its production by almost 200,000 b/d since Sept. 18, when the UN -backed Government of National Accord and the LNA agreed to a fragile truce to restart oil fields and terminals.
The ramp up is mainly due to the return of production from the fields operated by the Arabian Gulf Oil Co., or Agoco, a subsidiary of NOC. Agoco operates the Beyda, Hamada, Mesla, Sarir and Nafoora fields, together which have the capacity to produce around 300,000 b/d. Sources said all the fields except Nafoora have restarted and are gradually increasing production.
The key eastern oil terminals of Ras Lanuf and Es Sider remained closed at the end of last week as NOC has not lifted force majeure from these ports due to the presence of armed groups there.
S&P Global Platts Analytics estimates Libyan crude supply could return to 500,000 b/d this month but warned that "longer term stability remains uncertain."
LNA leader Khalifa Haftar announced on Sept. 18 the end of the nine-month blockade allowing the return of a potential 1.1 million b/d of crude that Libya was pumping before the embargo and the release of crude in storage. The producer was pumping around 120,000 b/d before the lifting of the force majeure partially on its oil industry on Sept. 19.
On Jan. 18, eastern tribes supported by the LNA halted exports from five oil terminals, sharply reducing the country's crude production, which hit the lowest level since the 2011 civil war at the time.
The force majeure was then imposed on crude loadings out of the terminals of Brega, Es Sider , Marsa el-Hariga, Ras Lanuf and Zueitina.
Libya holds Africa's largest proven reserves of oil and its main light sweet Es Sider and Sharara export crudes yield a large proportion of gasoline and middle distillates, making them popular with refineries in the Mediterranean and Northwest Europe.
As MRC wrote before, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.
Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.
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Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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