The Libyan National Oil Company announced the resumption of crude oil production in the southern Salara oilfield of the country. After protests from residents in the area demanding improvements in infrastructure and economic opportunities, the crude oil production facility closed on January 7th, producing 300000 barrels of oil per day. It accounts for a quarter of the total production of 1.2 million barrels per day in this North African country.

This state-owned energy company posted on Facebook stating that NOC has announced the lifting of force majeure and the resumption of full production of Salara. Sharara is operated by a joint venture between NOC, Equinor, OMV, Repsol, and Total Energies in France. The Sharara oilfield is crucial for NOC's future plans, as NOC announced in October that it plans to increase crude oil production to 2 million barrels per day within the next three to five years.

However, the recent closure of production facilities in Sharala does not bode well for the confidence of international oil companies, which have returned to Libya after years of political turmoil.

Last week, the country's oil minister stated that the closure of key oil fields could affect the country's gross domestic product and damage Libya's reputation as a reliable energy supplier.

During an event in Tripoli, Mohamed Oun stated that we believe the country has achieved stability and our customers are confident in obtaining stable oil production. Losing customers is a real risk that endangers everyone's future.

Hydrocarbons account for approximately 95% of Libya's exports and nearly 95% of government revenue. When trading starts on Monday, the daily return of 300000 barrels of Libyan crude oil to the market may affect oil prices. On Friday, the benchmark Brent crude oil price for two-thirds of the world's oil fell 0.68% to $78.56 per barrel. West Texas Intermediate crude, which tracks US crude oil, closed down 0.90% at $73.41 per barrel.Editor/XingWentao