Libya’s oil ministry agrees to settle funding dispute with National Oil Corporation

Oil

Libya’s oil and gas ministry has agreed to settle a dispute with the National Oil Corporation (NOC), after force majeure was previously declared on exports from the Marsa el-Hariga terminal on April 19 due to a lack of funding, Argus reports. This dispute has currently disrupted around 280K b/d of Libyan production as the NOC subsidiary Arabian Gulf Oil Co (AGOCO), has been unable to meet its ‘financial and technical obligations’, with another 100K b/d also now at risk as Sitre oil, a second subsidiary, announced similar financial constraints. Libyan crude output has reportedly fallen to below 1M b/d for the first time since November, according to NOC chairman Mustafa Sanalla, compared to an average of 1.19M b/d in March.