Libya's Sharara oil field resumes production as protests cease

(Bloomberg) – Libya’s Sharara oil field is gradually resuming production after protesters that shut the facility earlier last week left, a person familiar with the matter said.

The protesters ended their demonstration after officials released a man who’s vying to become the nation’s next central bank governor.

The nearby — but smaller — El Feel field, which was shut as part of the same protests, has also resumed production, another person familiar with the matter said.

Sharara is one of Libya’s biggest deposits. Before the disruption, it was producing about 250,000 to 260,000 bpd, while El Feel handles about 60,000 to 70,000 bpd. The separate Waha project can pump about 280,000 to 290,000 bpd.

The restoration of output will bring some relief for oil markets concerned about tighter supply and demand balances. Still, the protests are a reminder of the risks for Libya’s erratic production, as armed groups have regularly shut down fields over the years.