Libyan oil exports not yet affected by port strike: official

Cairo (Platts)--19Dec2012/612 am EST/1112 GMT


A port strike at Libya's Ras Lanuf oil terminal is not currently affecting exports of Libyan crude and petroleum products, which are continuing from the terminal as scheduled, an official of state-owned Arabian Gulf Oil Company, Agoco, told Platts.

Agoco's media and information director, Abdeljalil Mayuf, however, noted the potential for unabated political unrest, which has recently sparked industrial action at Ras Lanuf and other Libyan oil terminals, to disrupt petroleum exports in future.

"Exports aren't being affected by the strikes, but anything is possible at this time that might affect exports of petroleum products," he said late Tuesday.

Mayuf attributed the unrest to local discontent with job opportunities created since Libya's 2011 revolution at the country's oil refineries and export terminals, and the oil fields supplying them.

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"Libyans are calling for federalism since the current structure of central government isn't returning any benefits to Libyans despite the ongoing increase in exports of crude oil and oil products," he said in an interview late Tuesday.

"The security situation is also weak and the current government isn't in control," he added.

Mayuf suggested that oil operators with international partners were becoming particular targets for the ire of Libyans who had fought on the side of rebel forces to oust the late Libyan dictator Muammar Qadhafi. In connection with Ras Lanuf, he mentioned Harouge Oil Operations, a joint venture between Agoco's parent, National Oil Corporation, and Canadian independent Suncor Energy.

Harouge pumps more than 100,000 b/d of crude to Ras Lanuf from oil fields in central Libya's Sirte Basin.

Mayuf described Libya's current government as weak and ineffectual at working for the people's best interests.

"Ministers are just travelling overseas and spending most of their time away from Libya without paying attention to people's demands," he said.

Libya produced 1.48 million b/d of crude in November, according to the latest Platts survey of OPEC output. Before the revolution it produced as much as 1.7 million b/d.

--Sherif Elhelwa, newsdesk@platts.com
--Tamsin Carlisle, tamsin_carlisle@platts.com
--Edited by Geetha Narayanasamy, geetha_narayanasamy@platts.com