Tag Archives: Libya

Libya: NOC warns Beyda against using GCC-Qatar crisis as a pretext for illegal oil exports

Statement by NOC:

NOC Chairman Mustafa Sanalla said he had warned the head of the interim government in Beyda, Abdalla Thinni, not to use GCC-Qatar crisis as a pretext for illegal oil exports.

Sanalla said, “UN Security Council Resolutions and a slew of statements by the international community recognize NOC as the legitimate seller of oil on international markets.

As I think is obvious by now, we do not take sides in the Libyan political conflict. Our job is to protect and make the best possible use of Libya’s oil wealth, maximizing Libyan oil production and oil sales revenues for the benefit of all Libyans.” “NOC has never awarded contracts to benefit anybody but Libya,” he said. “We act in the Libyan national interest, not in the interests of foreign entities.” Sanalla said contracts signed by Nagi el-Moghrabi, appointed acting chairman of a parallel institution by Thinni, were with companies NOC would not accept as counterparties, and could cost Libya billions of dollars in lost revenue if they were ever implemented.

Sanalla warned Thinni against attempting further “irresponsible” port blockades, saying, “this will only bring further suffering to the Libyan people. It will reduce our national revenues and our ability to pay for vital commodities – fuel, food, power, medicines. It will devalue the dinar even further.

Sanalla concluded his letter by saying “We respect the Libyan National Army General Command for its responsible opposition to port blockades. It is clear they oppose Jadhran and Nagi tactics. They understand they are the path to Libya’s collapse. I hope you will take notice of their wise position on this matter.

Tripoli  June13, 2017

Tanker Market: “Libyan” Factor a Boon for Suezmax and Aframaxes’ Fortunes

The resurgence of Libyan oil production will offer support to Suezmax and Aframax tankers, in terms of demand, but in the short-term, prospects aren’t that rosy. In its latest weekly report, shipbroker Charles R. Weber noted that “Libyan crude production posted strong gains during May, rising from 700,000 b/d at the end of April to a three‐year high of 800,000 b/d early during May and subsequently concluding the month at 827,000 b/d, according to the country’s National Oil Company. The gains follow a restart of production at the Sahara oil field late during April after a weeks‐long closure and a restart of the El Feel (Elephant) field during May after having been offline for two years. A technical issue led to a short blip in production at the Sahara field – the country’s largest – during mid‐month likely implies that the average production rate for the month will be lower than the headline figures suggest, but directional improvements and multiple‐year highs imply a positive demand‐side development for Aframax and Suezmax tankers servicing regional cargo flows”, said the shipbroker.

Indeed, CR Weber notes that “a fresh influx of cargoes during late May proved quite supportive of Aframax rates – if only briefly. Aframax TCEs on the MED‐MED route jumped from just $10,700/day at the start of the month to over $25,500/day by May 24th. Contributing to the gains were modest supply gains from Ceyhan, as well as coverage of prompt cargo purchases of North Sea crude grades (during a brief Brent contango futures structure ahead of the OPEC production cut extension) which simultaneously propelled NSEA‐UKC Aframax TCEs to over $30,000/day. Suezmax rates in the same markets rallied in tandem as they have been trading at an effective floor dictated by Afrramaxes, with $/mt rates matching those of the smaller class. Any cheer among owners was short‐lived, however, as Aframax TCEs have largely corrected: presently, the MED‐MED route yields ~$9,776/day and the NSEA‐UKC route yields ~$11,977/day”, it said.

According to CR Weber, “the outlook for the remainder of Q2 and the start of Q3 doesn’t appear particularly rosy, despite potential for Libya to yield a steadier and elevated export flow during the coming months. Natural Aframax demand in the North Sea market is set to decline m/m during June, and the July program shows the fewest loadings of 2017. Meanwhile, Ceyhan loadings are unlikely to observe much further upside following May’s gains. Adding to prospective negative pressure, Suezmaxes appear poised for a wider supply/demand imbalance in the West Africa region, which could elevate vies by Suezmax units for Aframax cargoes. Nigeria’s Forcados crude stream is poised to return following repairs to the pipeline linking fields to the Forcados terminal. Though notionally positive for Suezmaxes (the traditional workhorse of West African exports) the return of Forcados could weaken regional crude differentials to Brent. This would make West African crude more attractive to Asian buyers seeking to offset a lack of supply growth in the Middle East due to extended OPEC production cuts with purchases elsewhere, thereby supporting VLCCs at the expense of Suezmaxes”.

The shipbroker added that “on a YTD y/y basis, VLCC demand in West Africa has grown by 28% while Suezmax demand has shrunk by 25%. Meanwhile, both the Aframax/LR2 and Suezmax fleets are grappling with extraordinarily high net fleet growth rates as a massive newbuilding delivery program is ongoing amid limited phase‐outs of older units. The Aframax/LR2 fleet is has expanded by 2.7% YTD and is projected to conclude the year with a net annual growth rate of 6.9% for 2017 while the Suezmax fleet has expanded by 5.4% YTD and is projected observe a net annual growth rate of 10.0%. Moreover, the majority of this year’s newbuildings have yet to enter the Atlantic basin. Our analysis of AIS and fixture data shows that the average Suezmax newbuilding does not appear in the West Africa market for 95 days after delivery – and of the 26 Suezmax units delivered since 1 Jan, just five have traded cargoes from West Africa so far. To put the volume of recently delivered units that have yet to enter the region into perspective, there are around 10 spot market‐serviced Suezmax loadings and 17 total Suezmax loadings in West Africa, per week”, the shipbroker concluded.

Source: HSN 6.6.2017

Libya: NOC statement on status of NC-96 and NC-97 concessions (Wintershall)

NOC and Wintershall signed a memorandum of understanding (MOU) on August 26, 2010, to extend Wintershall’s 50-year concession for areas NC-96 and NC-97 and to convert to EPSA IV terms, in line with other foreign operators in Libya.

Wintershall’s concession otherwise expired on March 27, 2016. Zuetina port, from which NC-96 and NC-97 production is exported, was blockaded by units of the Petroleum Facilities Guards at that time. Wintershall restarted production on September 16, 2016, when force majeure was lifted at Zuetina, and shut production on March 7, 2017. In the interim period, NOC and Wintershall held a number of meetings to discuss implementing the 2010 MOU. Wintershall chose not to honor its commitments and was not included in the latest loading plans as a consequence.
If Wintershall kept to its agreements, including seeking a resolution by arbitration, production and exports could continue. Instead, it has tried to interfere in Libyan internal politics and to take advantage of the weakness of the state.
10 May 2017
Tripoli

Libya: Central Bank (CBL) Imposes 5 Inspection Companies to Control Trade with Libya

 

In its attempt to stamp out corruption, the Central Bank of Libya (CBL) has imposed the following 5 Companies to Inspect all goods traded with Libya: Lloyds, Bureau Veritas, DNV-GL, GQS (Global Quality and Services) & GITO (General Inspection Technical Office)

Attached is the Official Circular (In Arabic only).

Libya: Tobruk call for Tunisian boycott after Tunis customs seize containers

A top Tobruk businessman is demanding a boycott of Tunisian goods after describing Tunisian customs as pirates for seizing containers from two Libya-bound vessels.

Ibrahim Al-Jarari chairman of the Tobruk Chamber of Commerce and Industry last month called for a ban on Tunisian ships entering Libya ports.  Now he is extending his demand to include Tunisian goods.

The problem appears to have begun when this February customs officers at the port of Sfax found some 25 million packets of cigarettes in 15 containers aboard the Panamanian-flagged Med Prodigy. Tunisia’s customs chief Adel bin Hassan was reported by local radio station Saraha FM to have hailed the customs’ seizure as the largest ever and said the cigarettes were worth $17 million.

The Med Prodigy’s captain is alleged to have told customs officials the cigarettes came from Turkey and had been ordered by a Libyan businessman for delivery to Misrata.  The vessel had sailed to Sfax from Valencia. According to MarineTraffic.com, it is still in the port nine weeks later. Tunisian customs hasnot explained if the shipping manifest for the containers was incorrect.

However, Jarari insisted to Alwasat that the goods were not being smuggled, that the documents were not falsified and that the shipment was legal.

Less clear is a second incident this March. This time Tunisian sources claim customs men intercepted another Libya-bound container ship at sea and escorted it to Tunis’ Rades port. There they allegedly found five containers full of Chinese-made sneakers. It is not thought that this vessel, which has not been named, was detained after the containers had been offloaded. Nor has it been explained how a shipment of sneakers could be so illegal that a container ship would need to be intercepted on the high seas by a customs cutter

LH 16.04.2017

 

Libya: NOC Discover New Gas/Condensate Offshore Libya

National Oil Corporation (NOC) and ENI North Africa Libya (Operator), being partners in an Exploration and Production Sharing Agreement (EPSA IV) signed in June 2008, announce a New Gas/Condensate Discovery in Contract Area ‘D’ (NC41) in Tripoli-Sabratah Basin, Offshore Libya.

The discovery exploration Well B1-16/3 is located approximately 140 km from the Libyan Capital Tripoli City and 5 km to the North of the producing Bahr Essalam Gas Field. The well was drilled in water depth of about 150 m and reached a total depth of 9780 feet (2981 meter).

The production test results are summarized in the following Table: