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Tuesday, February 22, 2011

MACTV News: Repsol suspends Libyan oil output, ports disrupted, Posted by Menelik Zeleke


February 22, 2011 2:22:09 PM

 * Repsol shuts Libyan oil output, follows Wintershall

* Operations at Libyan oil ports disrupted - sources

* Libyan gas to Italy flowing but complicated - minister

* Gas flows from Libya have slowed - energy publication
(Releads with Repsol, adds details)


LONDON/ROME, Feb 22 (Reuters) - Spain's Repsol shut down its oil output in Libya due to unrest and the country's marine oil terminals were blocked on Tuesday, adding to the disruption to oil supplies from Africa's third-largest producer.

Repsol is the second oil firm after BASF unit Wintershall to say it has stopped production in Libya. The move means that up to 135,000 barrels of oil per day (bpd), more than 8 percent of supply from Libya, has been shut down.

Oil prices have hit a 2-1/2 year high above $108 a barrel this week because of the disruption. Libya pumps about 1.6 million barrels of oil per day (bpd) of high quality oil, equal to about 1.9 percent of daily global output.

"We have suspended all operations in Libya today because of the violence and uncertainty," said a spokesman for Madrid-based Repsol, which gets about 3.8 percent of its production from the crisis-hit north African country.

OPEC member Libya is also a natural gas exporter and Italy, heavily reliant on energy imports, said it was ready to tap emergency gas stocks if Libyan supplies are interrupted.

Operations at Libyan oil ports were disrupted by a lack of communications, trade sources said, and flows from marine oil terminals in Libya were halted on Tuesday, an Italian government source said.

"The situation is worrying. This morning the oil terminals were blocked in Libya," the government source said.

Meanwhile, shipping sources said operations at Benghazi, Tripoli and Misurata Mediterranean ports, which handle general cargo and container shipping, had closed down.

'LINES DOWN'
It was not possible to get through by phone to Libyan oil ports or shipping agents on Tuesday.

"Everything is out," said a source with a major oil company. "We can't get through to anyone. Our operations people say contact is impossible with the shipping agents, port officials, anyone. The lines are all down."

Some ports were continuing to operate. An oil products trader said his cargo of gasoline was due to load as expected at Ras Lanuf.

The Libyan unrest has prompted Wintershall to wind down Libyan oil production of as much as 100,000 bpd and a number of firms including BP and Royal Dutch Shell to pull out international staff.

Repsol produced nearly 35,000 bpd in Libya in 2009.
Any halt in Libyan oil supply would leave a difficult hole to fill on world markets, analysts say, because while other members of the Organization of the Petroleum Exporting Countries are able to pump more oil, the extra supply would probably be of lower quality to Libyan crude.

Libya is Italy's biggest oil supplier and covers about 10 percent of its natural gas needs. Gas moves to Italy from Libya through the underwater pipeline Greenstream, which is controlled by ENI.

"Supplies have not been interrupted, but the situation is very complicated," Italy's junior minister in charge of energy, Industry Undersecretary Stefano Saglia, told a conference on Tuesday.

Saglia said the security committee for gas supplies had already been alerted in case flows were interrupted, adding that ordinary and strategic stocks would then be used.

"So there should not be a problem," he added.
Natural gas flows from Libya into Italy through the 510 km Greenstream have been slowing since late Monday, and the situation is worsening, Italian energy publication Staffetta Quotidiana said, quoting sources close to the situation.

Gas imports through Sicily's terminal of Gela, part of the Greenstream pipeline complex, stood at 25.8 million cubic metres on Feb. 20, according to the latest data from Italy's gas network, Snam Rete Gas. (Reporting by Alberto Sisto in Rome, and Daniel Fineren, Alex Lawler, Christopher Johson, Jonathan Saul and Emma Farge in London; writing by Alex Lawler; Editing by Anthony Barker)

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