The Organization of Petroleum Exporting Countries OPEC bothered as Libya’s oil output reaches highest in more than two years. OPEC member restores output amid progress in mending the nation’s political divisions.
This increase adds pressure on the world’s biggest producers who just signaled they may extend production cuts amid a slump in oil.
The North African country’s production has reached 796,000 barrels a day, Mustafa Sanalla, the chairman of state producer National Oil Corp., said Monday in a statement.
Libya was producing about 700,000 barrels a day at the end of April, Jadalla Alaokali, an NOC board member, said at the time.
A revival in Libyan output adds to the challenge that OPEC and other major producers face after agreeing last year to pump less crude to stem a glut and shore up prices.
Saudi Arabia and Russia said publicly for the first time they would consider prolonging their output reductions for longer than the six-month extension OPEC is widely expected to agree to when the group meets on May 25.
Libya was exempted from OPEC’s cuts because of its internal strife.
Political divisions, clashes between armed groups and closures of fields have disrupted output in Libya as the country with Africa’s largest crude reserves struggles to revive its most vital industry.
Bloomberg cited Libya’s feuding administrations agreed last week to unite state institutions and build a national army under civilian leadership after two days of talks in Abu Dhabi.
Libya’s largest oil field, Sharara, is currently pumping about 225,000 barrels a day, according to a person familiar on Monday. The person asked not to be identified because they lack authorization to speak to the media.
Crude from Sharara started flowing to the Zawiya refinery following a three-week closure.
El Feel, the oil field also known as Elephant, restarted last month as well, after having been halted since April 2015.
The resumption of operations at Sharara and El Feel, both in western Libya, has helped lift total national output to the highest since October 2014, when the country pumped 850,000 barrels a day, data compiled by Bloomberg