Libya restarts oil exports after deal with rebels

Technical problems and mistrust between the rebels and the government had delayed implementing an oil port deal but output has risen to 562,000 barrels per day (bpd), NOC said on Tuesday. This is well above lows of barely 100,000 bpd seen earlier this year, but still well short of levels of about 1.4m bpd a year ago.

Traders and shipping sources expect several more cargoes to be shipped by companies with stakes in the Waha Oil Co, which runs the Es Sider port and connected oilfields, such as Marathon Oil, Hess and ConocoPhillips. Austria's OMV is also expected to lift a cargo.

The North African country badly needs higher exports to cover budget needs as oil is the only source of income.

The Es Sider port currently holds some 4.5m barrels in storage, but once the tanks are emptied, the connected oilfields can restart production, officials said.

"The returning oil supply from Libya is flooding a market that is already amply supplied," said Commerzbank analyst Carsten Fritsch

Clashes in Tripoli and Benghazi have mostly occurred away from oilfields and ports, which in the past have often been the target of takeovers by armed factions pressing political or economic demands on the country's fragile government.

Apart from fighting another constant feature in post-Gaddafi Libya is frequent changes of senior government positions, reflecting political infighting and fast-changing alliances.

Acting oil minister Omar Shakmak said on Wednesday that he would resign following a written request by Prime Minister Abdullah al-Thinni.

"I will abide by the decision because it is not a matter of job but it is Libya. We can serve Libya in different jobs," he told Reuters. He did not say why he would be replaced.

NOC chairman Mustafa Sanallah will take over Mr Shakmak's job as deputy minister while remaining at the helm of the oil firm, Mr Harari said. Since there has been no oil minister for months, Mr Sanallah will effectively become acting oil minister.

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