Libyan unrest could put its oil exports at risk

August 03:

A SURGE in violence in Libya has led to Britons being evacuated, with analysts warning that the country’s oil exports hang in the balance.

Libya has been in the throes of political instability and social unrest since a coup toppled former leader Muam­mar Gaddafi in 2011.

The current flare-up between rival militant groups has led to more than 200 deaths in the capital Tripoli and the eastern city of Benghazi over the past fortnight.

The British embassy in Tripoli is set to suspend its operations today and relocate to neighbouring Tunisia, with all the remaining staff set to leave.

British ambassador to Libya Michael Aron told the BBC that staff would return to the embassy “as soon as security allows”.

The outbreak of violence has sparked concerns that Libya’s plans to ramp up oil production could be hindered. Libyan rebels last month agreed to allow the resumption of oil exports from two major ports, ending an almost year-long blockade.

“The current unrest is a definite risk to Libya’s oil exports and things will get worse before they get better,” oil and gas analyst Malcolm Graham-Wood told City A.M.

“The problems don’t seem to have hindered production so far but the situation is by no means sorted.”

Libya, which has the largest oil reserves in Africa, used to produce 1.4m barrels of oil per day before rebels seized the ports last year. The country’s current output is running at around 500,000 barrels a day.

On Wednesday, British Airways suspended flights to and from Tripoli until 5 August, due to the deteriorating security situation at the airport.

The Foreign and Commonwealth Of­fice currently advises against all travel to Libya and says that a limited number of commercial departure options are still available, but may change without notice.

Land routes remained open but the security situation could change very quickly, the FCO said.

Source: www.cityam.com/1407115963/libyan-unrest-could-put-its-oil-exports-risk?