After a 9 month oil production blockade which cost Libya billions of dollars in lost revenue, oil production restarted Sunday afternoon in Sharara. Before the blockade, Libya was able to contribute around 1.3 million barrels a day to the global supply.
The blockade was lifted after Libya’s central government and rebel commander Khalifa Haftar resolved a dispute over oil revenue distribution. The country’s oil output has begun to rapidly increase to 300,000 barrels a day from about 100,000 barrels a day and should continue to ramp up.
The Nation Oil Corp received assurances from the Petroleum Facilities Guard that it will end security violations, this has allowed the NOC to lift forced majeure and resume operations at the field.
As an OPEC member nation, the production ramp-up seems to go directly against the public comments from the organization and could be subject to penalties enforced by the OPEC governing body.