Libya's oil corporation wary of deal to re-open blockaded oil ports

Libya’s National Oil Corporation has expressed fears that the promise to reopen blockaded oil ports could be broken.

In an interview with Reuters, chairman of the company Mustafa Sanalla said that there is no written agreement, and added that in the past there have been agreements with Petroleum Facilities Guards which have been broken, despite millions being paid out to the guards.

“Let’s not forget that in the past there have been agreements with the Petroleum Facilities Guard … and all those promises have been broken before despite receiving a lot of revenue in hundreds of millions … we always watch and monitor what will happen because the old path had broken promises,” he said.

Libya’s government of national unity said in July that it was in talks with an armed brigade that has been controlling two main oil ports , Ras Lanuf and Es Sider with an export capacity of 600,000 bpd.

The oil corporation said on Sunday that it welcomed the deal and will start working to resume exports.

Higher production from the OPEC member state would add more oil to a global glut that has seen oil prices drop by more than half since 2014.

According to Sanalla, current production has been reduced to about 200,000 bpd, compared to pre- 2011 levels of 1.6 million bpd.

However, he remains optimistic that despite the difficult circumstances surrounding the situation, the issues could be eventually resolved and exports will resume.

The north African country has been engulfed in turmoil since 2011, following the ouster of Muammar Gaddafi with armed groups fighting to gain control.

Reuters