The Chairman of Libya’s National Oil Corporation (NOC), Farhat Bengdara, emphasised the corporation’s “commitment to its role with utmost neutrality, despite the challenges it encounters.”
Speaking at the General Assembly of the Arabian Gulf Oil Company (AGOCO) in Benghazi, Bengdara stated that the NOC, in collaboration with the government, “aims to change its funding mechanism through direct deduction from oil revenues.”
In a related context, Bengdara highlighted that the AGOCO achieved a high production rate, reaching 88% of the 2023 target, with an average of 273,000 barrels of oil per day.
Bengdara stressed the necessity of “holding accountable those who fall short or neglect their responsibilities, affirming the importance of adhering to performance rates, and increasing the agreed-upon production.”
He revealed the government’s approval of a project to connect pipelines from the Sirte fields to the Ras Lanuf port, covering a distance of 700 km. The project, described as significant, will be implemented in the near future.
Notably, the NOC declared a state of force majeure at the Sharara field, effective Sunday, 7 January, due to protests.
This significant development comes as a direct consequence of the field’s shutdown, instigated by sit-in demonstrators, leading to a halt in production. The field, a major source of revenue for the country, has been a frequent target of protests and blockades, reflecting ongoing regional and political tensions within Libya.
The declaration of force majeure, a legal term used by companies to relieve them from contractual obligations due to circumstances beyond their control, underscores the severity of the situation and its potential impact on Libya’s oil output and economic stability.
The NOC’s announcement is expected to have substantial implications for the Libyan oil industry, which is a critical component of the national economy, and a significant player in the global oil market. This disruption at Sharara poses challenges not only for Libya’s domestic financial stability, but also for international oil prices and supplies.
As the situation unfolds, further updates and responses from both Libyan authorities and international stakeholders are anticipated in the wake of this major disruption in the country’s oil production.