Libya's Oil Production: Back on Track Amid Political Turmoil

Libya's National Oil Corporation announced the resumption of full oil production nearly two months after halting operations at two major fields due to a political crisis. The decision follows the resolution of a conflict involving the Central Bank. Previously, the shutdown was attributed to local protests and governance disputes.

Libya's state-run National Oil Corporation (NOC) declared on Thursday the reactivation of full oil production, ending nearly two months of halted operations at major fields amid a significant political crisis. This announcement came as a relief to the oil market and Libya's economy.

The NOC stated it plans to resume production at the Sharara and El-Feel oil fields, alongside export operations from Es Sider, Libya's largest port. In August, the company invoked 'force majeure,' a legal clause allowing contract termination due to extraordinary events, halting operations during disputes over bank governance.

The shutdown was earlier linked to protests by the Fezzan Movement and a power struggle over the Central Bank's control. Recent political developments, including the appointment of a new Central Bank governor, were instrumental in restoring stability and resuming oil production. Libya, which produces over 1.2 million barrels of oil per day, heavily relies on the oil sector amidst its prolonged political fragmentation since the 2011 uprising against Moammar Gadhafi.

(With inputs from agencies.)