Libya: Two Occupied Oil Ports to Reopen
- Business & Finance
Libya’s government and federalist rebels have agreed the terms for the reopening of the country’s two occupied oil ports, the Zueitina and Hariga, with two more to follow, the Ras Lanuf and al-Sidra, in a few weeks’ time, the country’s justice minister said yesterday.
The reopening of the two terminals could potentially increase the crude exports by approximately 200,000 barrels per day, making a major breakthrough in the eight-month blockade of key ports that has cost the OPEC country billions of dollars in lost oil revenues, reported Reuters.
Hariga has a daily capacity of 110,000 barrels, while Zueitina can handle 70,000 barrels, according to IHS Inc records. Es Sider is the nation’s largest oil terminal, with a daily loading capacity of 340,000 barrels. Ras Lanuf has a capacity of 220,000 barrels.
“The agreement provides for re-opening the oil ports in two stages,” Libya’s Justice Minister Salah Al-Mirghani said during a press conference in Zueitin. “The ports of Zueitina and Hariga will be handed over to the state with the signing of this agreement; the protesters are banned from returning or obstructing work at the ports.”
According to the Washington Post, reopening of the two ports, which are in good shape, will follow as soon as pipelines are inspected.
Under the agreement, the government will pay compensation to the rebels, drop charges against them and reverse its threat of a military offensive, BBC reported earlier this morning.
Libya’s oil exports suffered 80% decline in the past eight months after the closures of oil ports led by rebels. The country that produced around 1.6 million barrels a day back in 2011, last moth recorded production at a daily rate of 250,000 barrels.
WMN Staff, April 7, 2014