Oil exports to resume from two major ports in Libya

LIBYA is lifting a force majeure on two oil ports handed over by rebels last week, paving the way for the return of exports after a year's freeze on exports.

The decision to formally lift a ban on shipping from the ports will provide further relief to oil markets that have eased in recent days after Iraqi disruptions failed to materialise, reported the Wall Street Journal.

A spokesman for the state-owned National Oil Co, Mohammad el-Harari, said force majeure had lifted from the two oil ports of Es Sider and Ras Lanuf that handle half of the country's oil exports. 

The move comes after rebels who had occupied them since late July 2013 struck a deal with the government.

A force majeure clause protects oil exporters against legal action in case of disruption, but also prohibits loadings from the affected terminal.

Some oil was exported over the past year from smaller loading points, including offshore production sites. 

Es Sider and Ras Lanuf normally ship 560,000 barrels a day combined, half of the country's export capacity of 1.3 million barrels daily.

Another NOC official overseeing the ports said they had ten million barrels of oil in storage, meaning they could swiftly restart sizable exports. 

However, Mr Harari said it was unclear when the first loading would take place and he has previously said Libya would ship the oil gradually to avoid hurting prices.

The prospect of resuming exports from the two terminals has already contributed to a decline of US$5 in the price per barrel of Brent crude oil last week.