Libya's crude production will take months to return to near the 1.22mn b/d achieved prior to blockades that froze all of the country's onshore crude output in January, according to state-owned NOC chairman Mustafa Sanalla.
Argus estimates Libyan production dropped to just 80,000 b/d in the second quarter, after averaging 1.1mn b/d in December.
The six-month halt has cost Libya $6.5bn in revenue and caused extensive damage to oil installations across the country, Sanalla said in an interview with Libya's Alahrara television.
He said that between 160 to 264 wells are in need of restoration work, at a cost of between $170,000 to $400,000 each, which suggests the total repair bill could be as high as $105mn. Around 4,300km of pipeline has been damaged, and only 12 of 35 storage tanks available at the Ras Lanuf and Es Sider terminals are operational with 21 completely impaired.
NOC on 20 June instructed all operating companies in Libya to prepare to resume oil activities, pending the lifting of blockades at eastern oil terminals. NOC implemented force majeure restrictions from all ports in January. These remain in place at Es Sider, Marsa el-Hariga, Marsa el-Brega, Ras Lanuf and Es Sider, according to Libyan and trade sources.
NOC last week said that a tanker was on route to collect crude from storage at Es Sider. Tracking data show the Suezmax Delta Ocean flagged on 4 July that it would reach Es Sider yesterday, but it has since changed its signal to indicate it is waiting for orders.