Libya crude output is said to be stable despite key field's halt

CAIRO (Bloomberg) -- Libya is keeping oil output steady as higher production from two of its biggest oil fields offsets the impact of a shutdown at a deposit operated by Italy’s Eni SpA.

The North African country currently pumps 1.1 MMbpd, with gains at the Sharara and Waha fields making up for lost output from the El-Feel deposit, which Eni operates in a joint venture with the National Oil Corp., a person familiar with the situation said. Production from Sharara, Libya’s largest field, and Waha rose to 300,000 bpd each, the person said, asking not to be identified because they’re not authorized to speak to news media.

Production from Mellitah Oil & Gas, the venture that operates El-Feel -- also known as Elephant, dropped to 25,000 bpd from 75,000 bpd after a protest by security guards closed the deposit. Crude loadings at Mellitah, the Mediterranean export terminal for El-Feel, will be “modified” after force majeure was declared for deliveries from the field on Feb. 23, the state-run NOC said in a document obtained by Bloomberg. Force majeure is a legal status protecting a party from liability if it can’t fulfill a contract for reasons beyond its control.

Libya, a member of OPEC, has struggled to boost oil production amid the lingering effects of civil war that began earlier in the decade. Although current output is the highest since June 2013, it remains well below the 1.8 MMbpd Libya pumped before the ouster and killing of former leader Muammar Qaddafi. Major oil fields including El-Feel and Sharara have experienced sporadic disruptions, occasionally setting back the revival.

Mellitah was set to load four cargoes this month, each holding about 600,000 bbl, according to a loading program seen by Bloomberg. One vessel was scheduled to be loaded Feb. 21 to Feb. 23. The NOC didn’t specify what the modifications would be to the loading program.

International companies are expanding their interests in Libya even as political uncertainty persists. Royal Dutch Shell and BP agreed last month to annual deals to buy crude. As of January, Libya and fellow OPEC member Nigeria pledged to limit their joint output to 2.8 MMbpd.