By Libya Herald reporters.
Tripoli, 22 November 2015:
The National Oil Corporation is reportedly in the midst of a four-month deal to supply . . .[restrict]150,000 barrels a day to a single trading company in a deal that has eased pressure to find customers for the country’s erratic oil supply.
The arrangement, first reported by Petroleum Argus last month, involves the substantial mining and commodities company Glencore, which since September has been lifting the oil from Tobruk’s Hariga export terminal.
It is understood that much of the Sarin and Messla crudes being bought by Glencore would otherwise have been piped to Libya’s largest refinery at Ras Lanuf, which has been closed after nearby fighting.
The oil trading company is apparently guaranteeing its purchases until next month when it has an option to renew the deal. The advantage for NOC is that it has assured sales in a volatile market. Glencore is almost certain to have pressed for a keen price in order for it to make a profit by selling on the shipments. Neither NOC nor Glencore has commented on the arrangement.
At the start of this month, NOC reported that production was averaging 415,000 b/d. [/restrict]