Libyan ceasefire brings hope of oil sector recovery

Oil

Libya’s internationally recognised Government of National Accord (GNA) and the leader of a rival parliament in eastern Libya have taken steps to end hostilities and lift the country’s oil blockade, which has been imposed since January, Reuters reports. Statements from both sides announcing a ceasefire offered hope for a de-escalation of conflict, and the restart of oil production and exports. Output has been slashed to less than 100K b/d compared to around 1.2M b/d before the blockade.

Libya’s National Oil Corporation (NOC) has stated that it welcomes this proposal, and that once all oil facilities are freed from military occupation force majeure can be lifted and oil exports can recommence.