Libya's Ports Prepare to Load Oil Tankers

Posted by Michelle Howard
Monday, April 07, 2014
  •  Hariga, Zueitina ports expected to open first
  •  Deal calls for more talks on larger terminals (Adds context, background, oil prices)


Libya's Zueitina oil port prepared on Monday to load crude on tankers after the government reached a deal with rebels to reopen four terminals that insurgents have occupied since summer.
 


The federalist rebels agreed on Sunday to end gradually their eight-month blockade of Zueitina, Hariga, Ras Lanuf and Es Sider ports, which account for around 700,000 barrels per day of the OPEC country's crude exports.



Brent crude fell $1.47 to a low of $105.25 per barrel before recovering to $105.72 by 1256 GMT, after news of an end to the port protest removed some of the supply worries affecting the oil market.



"The port is ready to start exporting at the present time or later at any time, and a maintenance unit team has already started work to receive the first tanker," said Abdulatif Al-Alam, operation coordinator at Zueitina.
 


He said the port was awaiting orders from the state-run National Oil Corp to begin receiving customers.



Under the agreement with Tripoli's government, Zueitina and Hariga ports were expected to open immediately while the larger ports, Ras Lanuf and Es Sider with around 500,000 bpd capacity, will be reopened in two to four weeks after more negotiations.
 


But the manager at Hariga said he had received no confirmation to reopen and would need at least 10 days to prepare for tankers to load crude.



The remarks from the Hariga manager indicated how technical problems and ongoing negotiations over the two larger ports could still delay a full reopening of the North African state's oil supplies.



"It takes 10 days or two weeks at least to prepare the oil port to work again and to welcome customers and tankers to load oil," Hariga terminal manager Rajab Abdulrasoul told Reuters.



The deal to end the port standoff will be a major boost for Libya's fragile government, which has struggled to impose its authority over a vast nation still in chaos nearly three years after the fall of dictator Muammar Gaddafi.



Still, the agreement did not address rebels' key political demands for more autonomy or sharing of oil revenues. Details were not clear about what remains to be negotiated over the two larger terminals.



Tough Negotiations
The clash over control of Libya's oil resources was the starkest example yet of how far the government is unable to impose its authority over brigades of former rebels and militias who refused to disarm after Gaddafi's fall and often use their muscle to strong-arm the state.



The federalist rebel leader, Ibrahim Jathran, is a former anti-Gaddafi fighter who took command of facility guards protecting oilfields, refineries and ports. He defected with thousands of his men in the summer to seize three terminals.



Hariga had been taken over by a separate group of protesters who sympathized with Jathran's campaign for a larger slice of Libya's oil wealth for his eastern region, where many feel they have been abandoned by Tripoli for years.



The agreement calls for a commission to investigate corruption, for charges against Jathran's men to be dropped and for the former oil guards to receive their state salaries.



Tripoli's government often finds itself falling prey to rival bands of former rebels and militias who are loosely allied with competing political factions in the country's parliament.

 

(writing by Patrick Markey; Editing by Erica Billingham and Dale Hudson)

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Piraeus Port Posts Flat Profit, Sales Dip

Greece's Piraeus Port (OLP) , the largest in the country, said its first-half net profit was almost unchanged from the same year-ago period, while sales fell. Piraeus Port,

Hyde Marine to Display Ballast Water Tech at SMM

Hyde Marine, Inc., a ballast water treatment technology company, will showcase its Hyde GUARDIAN Gold HG250G Ballast Water Treatment System (BWTS) at the upcoming Shipbuilding,

Report: Ports Lack Maintenance Support

The latest Barometer Report from Trelleborg has revealed a huge gap in the maintenance requirements of port owners and operators, and the support that suppliers are able to provide.

Tanker Trends

Pine Galaxy to Arrive SF Bay Wednesday

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

Pine Galaxy Expected to Arrive in San Francisco Today

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

Gazprom, Sovcomflot Expand LNG Transport Cooperation

Gazprom and Sovcomflot named the new state-of-the-art 170,000m³ liquefied natural gas carrier (LNGC) Pskov, after one of the oldest Russian cities. The ship will

Ports

Piraeus Port Posts Flat Profit, Sales Dip

Greece's Piraeus Port (OLP) , the largest in the country, said its first-half net profit was almost unchanged from the same year-ago period, while sales fell. Piraeus Port,

Panama Canal: The Billion Dollar Challenge

Panama Canal expansion will cost operators, insurers As the Panama Canal prepares to celebrate its 100th anniversary, insurers are warning of the increased risks

Legislation Signed for Ports Upgrades

Today, Governor Brown signed AB 2395 Legislation. The bill was co-authored by Bonnie Lowenthal chair of the Assembly Transportation Committee and the Select Committee

Energy

Scottish Independence Would Hurt Maritime Sector

A vote for independence from the U.K. would have a negative effect on the Scottish shipping and offshore maritime sector, according to a survey by leading international

Report: Ports Lack Maintenance Support

The latest Barometer Report from Trelleborg has revealed a huge gap in the maintenance requirements of port owners and operators, and the support that suppliers are able to provide.

SBI Offshore Negotiating Contract for Rig Builds

SBI Offshore Limited has announced that the Middle East-Chinese consortium, which recently awarded its subsidiary a contract to provide design and engineering services for a jack-up drilling rig,

Government Update

Wishful Thinking From Across the Pond

European Shipowners Pursue Softening of the Jones Act Just last month, the Secretary General of the European Community Shipowners’ Association (ECSA) opined that

Scottish Independence Would Hurt Maritime Sector

A vote for independence from the U.K. would have a negative effect on the Scottish shipping and offshore maritime sector, according to a survey by leading international

Legislation Signed for Ports Upgrades

Today, Governor Brown signed AB 2395 Legislation. The bill was co-authored by Bonnie Lowenthal chair of the Assembly Transportation Committee and the Select Committee

 
 
Maritime Contracts Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1310 sec (8 req/sec)