The National Oil Corporation (NOC) has stated that the oil blockade which has led to the shutdown of Libya’s fields and refineries, has cost the country close to $4 billion, with production falling below 100,000 bpd.
The blockade comes amid continued fighting between General Khalifa Haftar’s Libyan National Army, which is loyal to the Eastern Interim Government, and forces loyal to the Government of National Accord in Tripoli.
The NOC called on all parties to the conflict to lift the blockade and restart the oil and gas production, so that citizens may benefit from a stronger economy and steady supply of fuels. This blockade is believed to have cost Libya 1.13 million bpd in lost production, a total of 83 million barrels.
This situation comes at a difficult time, as both OPEC and non-OPEC producers are considering oil production cuts. This is in response to the rapid plunge in oil prices due to Saudi Arabia’s decision to overproduce, some 12.3 million bpd.
Calls for a humanitarian ceasefire in Libya, amid the COVID-19 epidemic have not been successful, with both sides blaming each other for the resumption of hostilities.