Statement Issued by NOC Chairman:
Statement Issued by NOC Chairman:
The Misrata-based Libyan Ports Company has refused to relocate its headquarters from Misrata to Benghazi after being ordered to do so by the Beida-based government of Abdullah Al-Thinni.
The company, previously known as the Socialist Ports Company, said the order infringed Law No. 21 which established company in 1985 and which stated that the headquarters were in Misrata.
Last month, following lobbying from the company officials based in Benghazi, the Beida government ordered the Misrata management to transfer the company to Libya’s second city. The order said that this was to be a temporary measure.
As a result of it and its rejection by the board in Misrata, there are now two parallel port companies. The Benghazi one, recognised by the interim government as well as the Libyan National Army and the House of Representatives, is headed by Captain Tarek Al-Thabet.
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
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
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:
National Oil Corporation (NOC) today reasserted that it is the only body authorized by United Nations resolutions to export crude oil and oil products from Libya.
NOC confirmed that term contracts covering the entire production for 2017 for all Libyan crude grades have already been entered with 16 international oil companies. Only these companies are legally contracted to buy Libyan crude oil and to charter shipping tankers from Libyan ports for 2017. The companies are the following: ENI, Total, OMV, Repsol, Rosneft, LukOil, Cepsa, Saras, API, Glencore, Socar, Unipec, Vitol, Gunvor, Petraco, and BB Energy.
NOC identified a group of individuals abusing the status of political division in Libya by entering into illegal contracts with unknown or unqualified companies.
NOC said these individuals, and others associated with them, have offered Libyan crude oil for sale at huge discounts below the Official Selling Price (OSP). if implemented the losses to the state of Libya of these contracts would be hundreds of millions of dollars in lost revenue.
NOC warned the maritime market and crude oil market that these contracts are illegal and that entering into them may lead to serious legal consequences and financial losses. NOC does not accept responsibly or liability whatsoever for any loss or damage incurred as the result of entering into contracts with unauthorized individuals.
NOC also confirmed that all crude oil exports are paid by documentary letters of credit, and at the Official Selling Price (OSP) without any discount.
NOC – Tripoli 26.03.2017
Full article as published by the Libya Observer on 27.01.2017 : http://goo.gl/8UKeis