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Libya’s NOC Declares Force Majeure on Major Oil Terminals

July 1, 2022
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On Thursday, the National Oil Corporation (NOC) declared a state of force majeure at Es Sidr, Ras Lanuf Ports, and the El Feel Oilfield.

In a statement, the NOC’s Chairman, Mustafa Sanalla said that the decision comes after the 72 hour-deadline had ended. As well as the loss of more than LYD 16 billion due to blockaded production, and shipping operations at local oil ports.

He added that the force majeure is still in force at the ports of Brega and Zueitina.

“We have run out of patience after we had repeatedly sought to avoid declaring a state of force majeure, but the implementation of our commitments has become impossible. We are forced to declare a state of force majeure on the ports of Es Sidr, Ras Lanuf, and El Feel Oilfield,” Sanalla said.

According to the statement, it became “impossible to provide the Zuetina, North Benghazi, and Sarir power stations with natural gas.” The production of crude oil is linked to gas from the fields of the Waha and Mellitah oil companies, disrupting the coastal pipelines supply of natural gas.

“Today, we are faced with ever greater challenges due to our inability to cover the needs of vital facilities in the country with fuel, due to the sharp decline in oil production,” he claimed.

He stated that “the crisis will worsen in the coming summer months unless oil production is resumed, or the current deficit in the hydrocarbons account is addressed.”

Sanalla criticized the country’s politicians for using oil, the main source of income, “as a bargaining chip,” describing it as “an unforgivable sin.”

The NOC currently has active force majeure measures at the Marsa El-Brega and Zueitina ports. As well as at the 70,000 bpd-producing El Feel and Libya’s largest field, 300,000 bpd El Sharara — although the latter is understood to be operating at minimal capacity, rather than fully shut down.

The closures are a result of protests that have demanded the transfer of power from Abdel-Hamid Dbaiba’s Government of National Unity (GNU) to Fathi Bashagha’s Government of National Stability (GNS), the fair and transparent distribution of oil revenues, and the dismissal of Sanalla.

Tags: Force Majeurelibyanational oil corporationnocRas Lanuf
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