Libya: Press-release by NOC confirming East & West offices Unity

Full statement:

Eng. Mustafa Sanalla and Dr. Nagi el-Maghrabi, met on 15May 2016 in Vienna to agree on steps to unify NOC and lift the blockade at Hariga port.

The meeting was held at the direction of the Presidency Council and was the fourth such meeting between Mr. Sanalla and Dr. el-Maghrabi since a first meeting on March 17 in Tunis.

The two sides signed a memorandum of understanding asking the House of Representatives and the Presidency Council to unify the oil sector. The two sides also agreed to resume crude oil shipments from Hariga to avoid damage to pipelines, avert a financial crisis, and ensure power supplies are not interrupted further. Resuming crude oil supplies will help to limit the Deficit in Libyan budget, the draw on CBL reserves and the direct effects on LYD rates. The MOU makes no distinction between shipments for export and for domestic supply.

MT Seachance sailed today from Marsa Al Hariga with 660k BBL onboard announcing the resumption of the export from the port.

In conclusion, we take this opportunity to assure the oil market about the future stability in the production of Misla & Sarir and exports from Marsa Al Hariga and we will do our best to restore the confidence in the Libyan grades.

Tripoli 20 May 2016

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Libya: Off-Shore Oil

The Gaza Floating, Storage, Offloading Marine Terminal (FSO) has today arrived in Libyan waters at the Mellitah Oil and Gas operated offshore Bouri field, 120 km northwest of Tripoli. It has been travelling since March.

The FSO was manufactured at a cost of over US$ 500 million by South Korean main contractor SFX in the Southern Korean port of Busan. The Gaza FSO will replace the existing, but aging, Sloug FSO, which has been in situ since 1989.

Installation of the floating terminal was planned for 2015, but the Libyan conflict as well as a delay by the manufacturer has led to a 12-month delay in the completion/arrival of the FSO.

The Bouri field is part of Block NC41. Water depth at the site is 158 m and the field includes a central processing platform DP4 and satellite platform DP3 in water depths of 170m.

Treated crude oil from two platforms will be pumped and stored via 2 (two) 16” sea lines onto the FSO Gaza which will be permanently moored to a Single Point Mooring system and offloading to a shuttle tanker from the stern.

Source: LH + Others 21.5.2016

 

 

Libya: NOC’s press release urges end to blockade of Marsa el-Hariga oil terminal

The National Oil Corporation in Tripoli today urged the groups involved in the blockade of Marsa el-Hariga port to consider the consequences of their actions for ordinary Libyan people and allow loadings to restart.

 The blockade was implemented on April 30, after the Indian-flagged vessel ”Distya Ameya”, which attempted unlawfully to load crude oil, was designated by the United Nations Libya Sanctions Committee and forced to return its cargo to the internationally recognized and rightful owner, NOC.

“We and our colleagues at AGOCO have been working hard to find a solution, but what is happening at Hariga is part of a larger political struggle,” said NOC spokesperson Mohamed el-Harari.

“The people responsible for shutting Hariga need to know the consequences of their actions,” said Mr el-Harari. “The blockade will cause serious harm and bring no benefits. First, there are the technical consequences. We have reduced oil production from the oil fields in the south east that supply Hariga to one-third of previous levels. In less than three weeks we will have to shut production completely because the tanks at Hariga will be full. Oil from some of the fields is high in wax and it will solidify in the pipelines if it does not move. If that happens, some of that production capacity may be lost to us permanently.

“Then there are the financial consequences. Exports from Hariga account for three-quarters of our total oil production. After they are stopped, payments to the Central Bank will dry up and libyan Dinar will be badly effected ,We have revenue from gas exports, but our national income will be halved. Imports or subsidies or perhaps both will have to be cut. Then shortages of fuel, electricity, food and medicines that people have been complaining about will really begin to deteriorate.”

“The worst thing is this blockade will achieve nothing,” said NOC chairman Mustafa Sanalla. “In terms of legitimacy, which is what the blockaders want, it is a dead end. So I am asking them to reconsider their approach. Open the ports for the well-being of our country.”
“Unity is the only solution for our country. There is only one NOC and it is a model of what we can be,” said Mr Sanalla. “It is full of honest, hardworking people from all over the country. It represents the best of Libya.”

May 9, 2016 Tripoli

Libya: NOC’s press-release concerning m/t ”Distiya Ameya” (now off Al-Zawiya port for unloading disputed oil shipment)

Due to the action of the international community, the Indian vessel Distya Ameya, which was illegally attempting to export Libyan oil, has this morning at 9am local time returned its unlawful cargo to Libya.

It has been directed to discharge at Zawiya refinery upon our request, where the oil will be used for the benefit of all Libyans. The vessel will complete the discharge within the next days.

I would like to thank all the people involved for helping to bring about a swift and safe resolution of this matter.

This incident is a clear warning to all ship owners and trading companies that oil exports from Libya by any other entity than the National Oil Corporation of Libya  are illegal and will be stopped.

The Libyan individuals behind this attempt risked splitting the country by their reckless actions.

Let us be clear, that is what is at stake.

I believe in the unity of Libya. As one nation we need to agree that our oil should not be divided at this stage of our political evolution, because this will lead to the country itself being divided. This is missing from the Libyan Political Agreement, and perhaps it should have been at the heart of it.

In the past days, Mr. Ali el-Hibri met with the Presidency Council to discuss liquidity shortages and the Banks problems in the East. This is the right forum to direct questions of national equality. Our job at the NOC is to ensure the maximum revenue for the Central Bank of Libya. The Central Bank distributes money in the country. Dividing the NOC will not mean there will be more money from oil. In fact, I can guarantee it will mean there will be less.

Where there are shortages in our wealthy country we need to understand why they have come about.

In the last three years, we have lost close to $75 billion up to April 2016 due to blockades at our oil ports and oil pipelines by militias. That is $20,000 for every adult in this country. This is the money that could be rebuilding the country, providing for basic needs, medicines and healthcare, electricity, education and so on, in the East, the West and the South.

At present, over one million barrels per day of oil production is shut down for political reasons.

Since the revolution, we at the NOC have ensured we do not favor one group of people in Libya over another. Our only political agenda, if you can call it that, is to promote the unity and prosperity of the whole country.

We can double our production – and national revenues – within a matter of months if the blockades are lifted. We have a plan to bring oil production back to pre-revolution levels.

Libya has the potential to be the richest country in Africa and one of the richest countries in the world. But we will not get there by following the example of the Argument  behind the Distya Ameya.

NOC – April 30, 2016 Tripoli