The Libyan Minister of Oil and Gas, Mohamed Aoun said that current oil production declined to 950,000 barrels per day, while average gas exports range between 300 and 400 million cubic feet.
In an interview with CNBC Arabia, Aoun revealed that his ministry has successfully recovered $2 billion dollars from the former Chairman of the National Oil Corporation (NOC) Mustafa Sanalla, and returned it to the state treasury.
He noted that additional amounts are still to be recovered from various companies, with approximately $500 million dollars pending. He emphasized that foreign companies have shown no objection to the process.
Aoun mentioned that there is a freeze on Libyan funds in the United States estimated at $30 billion dollars, with a similar amount frozen in Europe.
Notably, the NOC declared a state of force majeure at the Sharara field, effective Sunday, 7 January, due to the 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.