LONDON: Libya’s National Oil Company said it expected oil production to rise to 260,000 barrels per day (bpd) next week, as the OPEC member looks to revive its oil industry, crippled by a blockade since January.
Oil prices fell around 5 percent on Monday, partly due to the potential return of Libyan barrels to a market that’s already grappling with the prospect of collapsing demand from rising coronavirus cases.
Libya produced around 1.2 million bpd — over 1 percent of global production — before the blockade, which slashed the OPEC member’s output to around 100,000 bpd.
NOC, in a statement late on Monday, said it is preparing to resume exports from “secure ports” with oil tankers expected to begin arriving from Wednesday to load crude in storage over the next 72 hours.
As an initial step, exports are set to resume from the Marsa El Hariga and Brega oil terminals, it said.
The Marlin Shikoku tanker is making its way to Hariga where it is expected to load a cargo for trader Unipec, according to shipping data and traders.
Eastern Libyan commander Khalifa Haftar said last week his forces would lift their eight-month blockade of oil exports.
NOC insists it will only resume oil operations at facilities devoid of military presence.
Nearly a decade after rebel fighters backed by NATO air strikes overthrew dictator Muammar Qaddafi, Libya remains in chaos, with no central government.
The unrest has battered its oil industry, slashing production capacity down from 1.6 million bpd.
Goldman Sachs said Libya’s return should not derail the oil market’s recovery, with an upside risk to production likely to be offset by higher compliance with production cuts from other OPEC members.
“We see both logistical and political risks to a fast and sustainable increase in production,” the bank said. It expects a 400,000 bpd increase in Libyan production by December.
The Organization of the Petroleum Exporting Countries and allies led by Russia, are closely watching the Libya situation, waiting to see if this time Libya’s return to the oil market is sustainable, sources told Reuters.
Libya’s NOC says production to rise as it seeks to revive oil industry
https://arab.news/g7kpd
Libya’s NOC says production to rise as it seeks to revive oil industry
- Libya produced around 1.2 million bpd – over 1 percent of global production – before the blockade
- Libya’s return to the oil market is sustainable
Saudi Arabia’s NDMC raises $13bn for infrastructure projects
RIYADH: Saudi Arabia raised $13 billion through a seven-year syndicated loan as the Kingdom steps up funding for infrastructure projects spanning power, water and public utilities.
The financing was arranged by the National Debt Management Center as part of the government’s medium-term borrowing strategy, which aims to diversify funding sources and secure financing at competitive costs, the agency said in a statement.
The transaction supports Saudi Arabia’s broader push to upgrade infrastructure under its Vision 2030 economic transformation program, as the government accelerates investment in utilities and development projects alongside private-sector participation.
“This transaction aims to leverage market opportunities to execute alternative government financing activities that contribute to economic growth, including the financing of development and infrastructure projects aligned with Saudi Vision 2030,” said NDMC.
NDMC was established in 2015 within the Ministry of Finance as the Debt Management Office before being restructured into its current form, with a mandate to manage public debt and meet the government’s financing needs across short-, medium- and long-term horizons.
The syndicated loan follows a series of recent debt market transactions. In December, the center raised SR7.01 billion ($1.87 billion) through a domestic sukuk issuance split across five tranches, with the first one valued at SR1.23 billion set to mature in 2027.
The second tranche amounted to SR335 million, maturing in 2029.
The third tranche was valued at SR1.180 billion maturing in 2032, and the fourth tranche was SR1.692 billion set to expire in 2036.
The fifth tranche was worth SR2.573 billion, maturing in 2039.
In September, NDMC completed the issuance of a $5.5 billion (SR20.63 billion) international sukuk under the Kingdom’s Global Trust Certificate Issuance Program.
The offering — the country’s first international sukuk based on an Ijarah structure — was issued in two tranches. A five-year sukuk maturing in 2030 raised $2.25 billion (SR8.44 billion), while a 10-year tranche maturing in 2035 secured $3.25 billion (SR12.19 billion, NDMC said at the time.
The center added that the issuance aligns with its strategy to diversify the investor base and meet Saudi Arabia’s financing requirements through international debt capital markets in an efficient and effective manner.
