Libya's major Sharara oilfield will resume operations after an agreement was reached with the armed group that had shut it down last month, a senior Libyan oil source said on Monday.

"Negotiations were held yesterday and today it was confirmed that the Sharara oilfield will resume operations," the source told Reuters.

Sharara, which can pump around 350,000 barrels per day, was shut down in late June in a dispute over securing the facility. Its operator Akakus is a joint venture between Libya's National Oil Corporation and Spain's Repsol. – Reuters