Libya to Restart Closed Oilfield, Add ~60,000 bpd to Glut

Libya is planning to restart its Wintershall oilfield. That would put some 57,000 bpd of new supply into the market. 

Share this post


Link to post
Share on other sites

Why was it closed? Under attack? Part of the power struggle?

Share this post


Link to post
Share on other sites

no ... protests, and closed since November. It's the Sara oilfield, operated by Wintershall AG

Share this post


Link to post
Share on other sites

and ... Shell and BP have just agreed to annual deals for the purchase of Libyan crude. 

Share this post


Link to post
Share on other sites

normally that would be a strong indication of 'recovery', but in this case I don't get the supermajor sentiment. The situation in Libya is highly unstable and can change on a dime. 

Share this post


Link to post
Share on other sites

57K bpd is not good news for prices. OPEC's compliance has banked on LIbya and Venezuela's crippled production.

Share this post


Link to post
Share on other sites

Just now, Rodent said:

57K bpd is not good news for prices. OPEC's compliance has banked on LIbya and Venezuela's crippled production.

I would tend to agree with you, except for the fact that Libya is bound to have further supply disruptions. It's not like their problems are over. The extra 57,000 barrels daily is probably not going to hold. They've been trying to bolster production for a long time now.

Share this post


Link to post
Share on other sites

Well, maybe the oil majors know something we don't. I don't think they'd be rushing headlong into something that carries too much risk.

 

Share this post


Link to post
Share on other sites

Just read that Wintershall's shutdown of the oilfield was "unauthorized'. I take that to mean they cave to strikes without the National Oil Company's approval?

Share this post


Link to post
Share on other sites

4 hours ago, TraderTate said:

Just read that Wintershall's shutdown of the oilfield was "unauthorized'. I take that to mean they cave to strikes without the National Oil Company's approval?

I think that's exactly what they mean. 

Share this post


Link to post
Share on other sites

On 1/22/2018 at 2:04 PM, Rodent said:

57K bpd is not good news for prices. OPEC's compliance has banked on LIbya and Venezuela's crippled production.

and now Venezuela is saying it can ramp up by 1 million barrels per day easily. If Libya and Venezuela both increased production to a significant extent, OPEC would be in trouble.

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0