A Greek-managed aframax tanker has been waiting outside of Es Sider for more than a week, vessel-tracking data shows, as Libya’s National Oil Corp (NOC) is unwilling to lift force majeure on crude exports due to foreign mercenaries at its facilities.
Minerva Marine’s 104,000-dwt Minerva Eleonora (built 2004) arrived at the eastern Libyan port on 10 September, but the loading operation has yet to start as of early Friday, Kpler data suggests.
According to VesselsValue, US energy firm Hess chartered the vessel to lift 80,000 tonnes of crude from Es Sider between 10 and 12 September at Worldscale 60.
Last week, rival governments of Libya held peace talks and sealed a tentative power-sharing agreement over the country’s key posts.
But NOC chairman Mustafa Sanallah said force majeure cannot be lifted as his company’s professional works were not respected during the negotiation.
"We have more than fifty tanks filled with hundreds of thousands of tonnes of highly ignitable and explosive hydrocarbon materials, and we have foreign mercenaries inside these facilities,” Sanallah said in a Facebook post on Friday.
“Force majeure cannot be lifted in the presence of these foreign mercenaries.
“We will never allow the oil sector to be used as a bargaining chip in any secret or public talks.”
Sanallah has called on all armed groups to withdraw from Libya’s oil fields and terminals and make them “demilitarised zones” while singling out Russia’s Wagner Group, which backs renegade general Khalifa Haftar.
“We will not allow the Wagner mercenaries to play a role in the national oil sector," he said.
Civil unrest
Haftar's Libyan National Army (LNA) has blockaded the eastern terminals of Es Sider, Ras Lanuf, Zueitina, Brega and Hariga since January as the general sought to conquer Tripoli.
Following several victories of the United Nations-recognised Government of National Accord against the LNA in May and June, NOC instructed the export terminals to come back online.
However, after the 106,074-dwt Kriti Bastion (built 2003) lifted crude from Es Sider in early July, the state-owned company was forced to redeclare force majeure after forces loyal to Haftar ordered a halt to further exports.
Following Sanallah’s remarks, Haftar reportedly announced he will lift the blockage for one month assuming that oil revenue can be distributed fairly.
It remains unknown whether or when the Minerva tanker would begin loading. TradeWinds has approached the shipmanager and Hess — which has upstream interests in Libya — for comments.
The resumption of Libyan oil exports will provide more employment opportunities for aframaxes and suezmaxes in the Mediterranean.
Kpler data suggests Libya’s crude exports have averaged 112,000 barrels per day (bpd) this year, sharply lower than the 2019 level of 1.01m bpd.
In a recent note, S&P Global Platts Analytics expected Libyan crude output to reach 365,000 bpd by December, including 300,000 bpd from onshore western fields. But eastern exports are not forecast to begin until April 2021.
“A field-level restart will ultimately hinge on a mutually accepted oil-revenue sharing deal by LNA's Khalifa Haftar and his foreign backers,” Platts said.
