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By Libya Herald staff.
Tunis, 25 August 2015:
As Libyan refineries grapple with failing equipment and power supplies to produce for the domestic market, . . .[restrict]the National Oil Corporation has signed an 18-month deal to import high-sulphur gas oil in return 2.1 million barrels of oil a month.
The oil will largely be used by power stations, already struggling to to keep generating though lack of maintenance and spare parts.
NOC said at the weekend that exports had increased slightly to 400,000 barrels a day.
Few details of the deal signed with leading commodities trader Switzerland’s Glencore, have been revealed. The premium sweet crude will be exported through Tobruk’s Hariga terminal.
According to a UK analyst, it is likely that Glencore will have driven a tough bsrgain with NOC which is under pressure from GECOL to provide feedstock for power stations as well as being urged to find petrol, diesel and LPG for the domestic market. The current severe weakness in the oil price ought not to affect the deal. Nevertheless, despite the high quality crude that is Libya’s side of the deal, it seems likely that the gas oil product is being acquired at a premium, which may increase if the oil price moves away .
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