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Libya's Sarir field sees output loss due to fire, technical issues: NOC

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Libya's Sarir field sees output loss due to fire, technical issues: NOC

London — Production at Libya's Sarir oil field has dropped on the back of a fire at the field's power station over the weekend, as well as other technical issues at the site, state-owned National Oil Corporation said in a statement Tuesday.

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Compound 1 at the site experienced a fire on Sunday when an electric generator overheated, resulting in a production loss of approximately 30,000 b/d.

NOC also said it has been carrying out repairs at Compound 2, which has been inoperable since May due to a technical issue.

As a result, NOC said it expects output at the field to gradually recover by 60,000 b/d from current production levels of around 155,000 b/d.

"An internal investigation is under way to determine the cause of the temperature rise and an estimated restart date post repair works," NOC added.

The field, located in the Sirte basin and operated by NOC subsidiary Arabian Gulf Oil Company (AGOCO), has proven reserves of 4.8 billion barrels.

Libya's oil production is currently undergoing an upswing despite the recent escalation in fighting in the country between the self-styled Libyan National Army and forces loyal to the UN-backed government and other militia groups.

Libya's crude output rose to 1.12 million b/d in May, the highest since June 2013, according to the most recent S&P Global Platts OPEC survey.

NOC Chairman Mustafa Sanalla has previously warned that the protracted unrest in the country is continuing to hamper its operations, undermining the country's oil sector.

Sanalla has previously said Libyan production could hit 1.4 million b/d this year, if security is maintained. Oil and gas sales account for almost all of Libya's revenues.

-- Eklavya Gupte, eklavya.gupte@spglobal.com

-- Edited by James Leech, newsdesk@spglobal.com