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Libya Oilfield Halt Raises Crude Prices

Libya Oilfield Halt Raises Crude PricesLibya Oilfield Halt Raises Crude Prices

Libya’s oil exports from the Mellitah terminal will be modified after protests disrupted production at the key El-Feel deposit for the first time in two months, putting the OPEC nation’s crude production at risk of a decline again.

Crude loadings at Mellitah, the export terminal for El-Feel, will be modified after force majeure was declared on deliveries from the deposit on Feb. 23, the state-run National Oil Corporation said, Bloomberg reported.

NOC said on Saturday guards at the field were protesting over pay and other benefits. Force majeure is a legal clause protecting a party from liability if it cannot fulfill a contract for reasons beyond its control.

Production at El-Feel, operated by a joint venture of NOC and Italy’s Eni SpA, was last disrupted for one day in December due to a power outage.

The field has a production capacity of 90,000 barrels a day but it’s not clear what output was before the outage. NOC officials were not immediately available to comment.

Libya, a member of OPEC, was allowed to increase oil production while other nations in the group cut output to curb a global glut. The North African nation’s output earlier this month was 1.1 million barrels a day, the highest since June 2013, a person familiar said on Feb. 15.

 

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