23-05-2016

Libya plans to load four crude cargoes from Hariga in May -traders

Libya

Libya plans to load three additional crude cargoes this month from the recently reopened Marsa El Hariga terminal, after a tanker for trader Glencore departed.

The country’s National Oil Corp (NOC) in Tripoli chartered the Kriti Breeze to load 400,000 barrels of crude at the terminal in the next two days to take to the 120,000 barrels-per-day Zawia refinery, according to shipping brokers.

After it loads, the Kriti will be the second tanker to depart from the port after Glencore’s Seachance which waited for three weeks to load its 660,000 barrel cargo amid a standoff between eastern and western factions.

The Seachance has already left Hariga, according to NOC, and Reuters tracking data shows the tanker making its way to Malta.

Two additional tankers are due to load at the port this month according to the loading programme, trading and shipping sources said.

The additional tankers are most likely going to be lifted by Glencore as the trader has exclusive rights for exports from the terminal.

Glencore loaded around 4.2 million barrels of crude from the port in April, according to traders.

Traders said Indian buyers could turn to Libyan crude to replace lost Nigerian barrels after militant activity cut Nigeria’s oil exports to a more than 22-year low of under 1.4 million bpd.

Indian refiner HPCL bought a cargo of Qua Iboe crude from Glencore via a tender, but the tanker failed to load because of the supply disruptions, traders said.

The heads of Libya’s two NOCs signed an initial agreement in Vienna on May 15 asking the eastern parliament, known as the House of Representatives, and the Presidency Council, which represents the unity government, to unify the energy sector, NOC said in a statement on Friday.

The agreement also called for the resumption of exports from Marsa el Hariga.

“Resuming crude oil supplies will help to limit the deficit in the Libyan budget, the draw on Central Bank reserves and the direct effects on the Libyan dinar rates,” the statement said.

NOC also sought to assure the market on the future stability of Messla and Sarir crude exports from Hariga, adding it will do its “best to restore the confidence in the Libyan grades”.

Source: Reuters 

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