Oil Disruption Spreads Westward

Bloomberg reports that Libyan oil production fell to one-eighth of its capacity as protests over pay and allegations of corruption spread to the Repsol-operated Sharara and Eni-operated El Feel [El Fil, Elephant] fields in western Libya, disrupting supply to the Zawiya and Mellitah terminals respectively.

The protests were previously entrenched in the central and eastern regions that produce and export the majority of Libya’s crude.

Output slumped to about 200,000 bpd, compared with 640,000 in August and total capacity of 1.6 million.

Too many chiefs and not enough soldiers,NOC Director of Measurement Ibrahim Al Awami said, commenting on the promotion and hiring demands of some of the protesters who shut down the fields in the western region.

Reuters reports that an armed group shut down the pipeline linking Sharara and El Feel to ports. The two fields have a combined capacity of around 500,000 bpd.

"I'm upset. This is something ridiculous. There is nothing to discuss, it's up to the defence ministry and guards to fix this," Deputy Oil Minister Omar Shakmak told Reuters.

(Sources: Bloomberg, Reuters)

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