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Wednesday, April 20, 2022
Libya’s National Oil Corporation (NOC) announced a state of force majeure on the oil ports of Brega and Zueitina as it the company states it is now impossible to implement its commitments towards the oil market. The latest closures follow those announced at the Al-Feel and Al Sharara fields earlier in the week.
The shut downs are a result of widespread demonstrations and protester interference. The protestors in Libya are calling for Libya’s Prime Minister Abdul Hamid Dbeibah to step down amid mounting tension in the months following a December announcement that presidential elections were being postponed, just days before they were set to be held.
A statement on the NOC website read: “At a time when oil prices are recovering significantly due to increased global demand, which is being exploited by all producing countries to increase their oil revenues, the Libyan crude is being subjected to a wave of illegal closures, which will have serious damage to wells, reservoirs and surface equipment for the oil sector, as well as the loss of state treasury opportunities at prices that may not be repeated for decades to come.
“The NOC warns that the shutdown of production at Sirte oil and gas production and manufacturing company, will have implications for the stability of the public electricity network, especially the eastern region, as most power plants feed on gas produced from the company’s fields.”
Libya, despite its challenges, including dilapidated infrastructure and budget constraints, has managed to produce 1 to 1.2 million barrels per day for the past year and a half. These closures come at an unfortunate time for global consumers already faced with higher energy prices due to the horrendous war being waged in Ukraine by Russia.
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