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Libya troubled oil sector sees new revival

October 22/2020

MOSCOW (MRC) -- Libyas oil sector, shattered by unrest since the toppling of long-time leader Muammar Gaddafi in 2011, is back on the rise, said Hydrocarbonprocessing.

The easing of a blockade by eastern forces, which had cut output by more than 90% to around 100,000 bpd, has seen production recover to about 500,000 bpd. The government in Tripoli expects that to double by year-end. But after years of repeated shutdowns, damage to infrastructure and lack of investment, a return to the countrys pre-civil war capacity of 1.6 million bpd appears some way off.

National Oil Corp (NOC) subsidiary Arabian Gulf Oil Company (AGOCO) is producing around 190,000-200,000 bpd. The company has not yet restarted the al-Bayda or Nafoora oilfields because pumping is carried out through Es Sider port, which remains under force majeure.

Libyas biggest oilfield resumed operations on Oct. 11 at an initial production rate of around 40,000 bpd. By Oct. 19, the field was already producing at around half its 300,000 bpd capacity. Crude from the field feeds the 120,000 bpd Zawiya oil refinery, with the rest exported from the Zawiya oil terminal. Three 600,000 barrel cargoes are slated for export in October.

NOC lifted force majeure on loadings on Sept. 19. Unipec loaded the first cargo from the terminal shortly after.

NOC lifted force majeure at the terminal on Sept. 22. Shipping sources expect loadings to average around 80,000 bpd in October. The 70,000 bpd oilfield is expected to begin its restart on Oct. 24.

As MRC informed before, US crude stocks moved lower last week as Hurricane Delta shut in Gulf of Mexico output and exports hit a 14-month low, according to US Energy Information Administration data showed Oct. 15.

We remind that in August, 2020, US refiner Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We also remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, ethylene, neftegaz, petrochemistry.
Category:General News
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