Libya Ends Suspension of Crude Loadings From Zueitina Terminal
Libya opened the way for oil exports to resume from the eastern port of Zueitina by revoking a legal clause known as force majeure after rebels returned the terminal to government control earlier this month.
The 70,000 barrel-a-day facility is ready to receive tankers for loading, Mohamed Elharari, spokesman of state-run National Oil Corp., said today in a text message. An agreement reached on April 6 provided for the rebels to hand over control of Zueitina and Hariga, two of the four ports they seized in July, in return for an official amnesty and salary payments claimed by defectors from Libyas Petroleum Facilities Guard.
It seems the government has been making a renewed effort for progress, Richard Mallinson, an analyst at Energy Aspects Ltd. in London, said by e-mail. It still seems to be a complicated situation on the ground, and the market will want to see a cargo load to really confirm the terminal is operational again.
The North African nations difficulty in exporting crude has contributed to support for North Sea Brent, a benchmark for half the worlds crude including Libyas Es Sider grade, amid rising supply from Iraq and Iran. Libya, with Africas largest crude reserves, is struggling to restore output to the 1.6 million barrels a day it pumped prior to the February 2011 uprising that toppled former leader Muammar Qaddafi.
Force majeure excuses a supplier from meeting its delivery commitments because of events beyond its control.
Brent crude futures erased gains following the NOCs removal of the condition. Brent had advanced as much as 62 cents to $110.20 a barrel earlier today, and subsequently slipped to trade 39 cents lower at $109.19 as of 2:34 p.m. London time.
To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net; Saleh Sarrar in Dubai at ssarar@bloomberg.net
To contact the editors responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net Bruce Stanley, Claudia Carpenter
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Libya Ends Suspension of Crude Loadings From Zueitina Terminal