Continental Focus, International Reach

Force Majeure Declared on Zawiya Port

Thursday, August 1, 2019

Libya’s largest oil field has issues again and a force majeure has been called on crude loadings at Zawiya port as a result. According to state-run NOC, there is a reinstatement of force majeure on crude oil loadings at Zawiya port, which started on July 30. This was promoted by a valve closure on the Sharara pipeline to the port.

This is the second illegal valve closure and breach of pipeline security by unidentified perpetrators in the last 10 days, NOC said in a statement on its website.

NOC has notified commercial partners of this development. Staff from NOC’s subsidiary, Akakus Oil Operations attempted to reopen the valve but were prevented from doing so by a local armed group. Negotiations are ongoing in an effort to restart production as soon as possible.

NOC Chairman, Mustafa Sanalla said in the statement: “This latest incident only serves to highlight the fragility of our security environment and total disregard for the impact of such acts on the lives of everyday Libyans. The loss of production at Libya’s largest oilfield severely disrupts power supply to the grid and continued funding of basic services. This is most acutely felt by communities in the South. The perpetrators of this incident must be brought to justice and the rule of law upheld. Adequate operational budget must be secured to strengthen industrial security procedures to prevent further such incidents.”

Akakus has informed the General Electric Company of Libya of the subsequent disruption to Obari power plant crude oil supply. Alternative arrangements are being prepared to ensure continued operations at the power station.