PetroChina to buy Libyan oil.

Catogory : Market Report

PetroChina has signed an annual contract to buy Libyan crude in 2018, Bloomberg reports. It is the first oil purchase deal with the NOC by the Chinese company since 2013.

The deal comes after similar deals were agreed by oil majors like Royal Dutch Shell and BP in January. The deal is seen as vote of confidence in Libya’s ability to increase its oil production – currently at around 1.2 million barrels per day.

PetroChina Co. agreed to an annual contract to buy Libyan crude after similar deals by oil majors like Royal Dutch Shell Plc and BP Plc, underscoring a recovery in the North African country’s production even as its political uncertainty persists.

NOC’s list of 2017 term buyers — including Eni SpA, Total SA, OMV AG, Repsol SA, Rosneft PJSC, Lukoil PJSC and Glencore Plc — will continue for 2018.

Mellitah Oil Company, which together with Italy’s oil giant Eni operates Al-Feel oilfield, was set to load four shipments this month, each holding about 600,000 barrels.

“Production from Sharara, and Waha oilfields rose to 300,000 barrels a day each.

Since 2017 Oil Companies are coming back to sign contracts with the Libyan National Corporation (NOC).