Libya Reopens Oilfields Amid Leadership Dispute Resolution

Libya's eastern and western governments have resolved a central bank leadership dispute, allowing for the reopening of oilfields and export terminals. This move paves the way for increased oil output. NOC announced lifting force majeure and discussed financing projects with the new central bank governor for revenue sustainability.

Libya's eastern-based government and the Tripoli-based National Oil Corp (NOC) announced the reopening of all oilfields and export terminals after reaching a resolution over the central bank's leadership issue. This step may facilitate a significant increase in oil output for the OPEC member.

NOC confirmed the lifting of force majeure at all oilfields and terminals as of October 3, following a security assessment regarding major sites like Sharara, El Feel, and Essider, allowing operations to resume. NOC chief Farhat Bengdara met with the new central bank governor, Naji Issa, to discuss financing projects to boost production and mitigate financial shortfalls caused by previous closures and prices.

The oil sector in Libya has faced disruptions since the country's division in 2014. Prior to the recent halts at Sharara and El Feel, Libya produced about 1.2 million barrels per day. September exports averaged 460,000 bpd. The new leadership aims for normal operations, emphasizing the central bank's technical role and distancing it from politics.

(With inputs from agencies.)