Libya’s NOC Lifts Force Majeure on Oil Exports

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On Friday, Libya’s state-owned National Oil Corporation (NOC) lifted force majeure on all oil exports.

The tanker ‘Crete Bastion’, will be the first ship to be loaded from the Sidra oil port, the NOC said.

Production will gradually increase but it will take time to return to full capacity as a result of the severe damage to the reservoirs and infrastructure. This is due to the closure imposed since January 2020.

“We are extremely happy that we were able to take this important step towards national recovery. I would like to thank all the parties that participated in the recent discussions to help achieve this successful outcome”, said NOC Chairman Mustafa Sanalla.

“It must be recognized that this is a step with a common national goal for achieving lasting peace and stability in the country. For the National Oil Company, work has just begun. Our infrastructure has been damaged and we must now focus on maintaining and establishing a budget to undertake these jobs” Sanalla said.

Sanalla added: “We must also take steps to ensure that Libya’s oil production will not be subject to bargaining again, to offset the losses incurred by the country as a result of declining oil production. This was valued at approximately $6.5 billion. The National Oil Corporation is facing massive costs to repair the severe damage to the infrastructure. The costs of repairing the pipeline network, surface equipment, and maintenance of wells will reach billions of dinars”.

Tribal leaders in eastern Libya closed oil ports and fields on 17 January 2020.

They accused the Tripoli-based Government Of National Accord (GNA) of using oil revenues to support armed groups against the Libyan National Army (LNA).

Oil, the lifeline of Libya’s economy, has long been a key factor in the civil war, as rival authorities jostle for control of oil fields and state revenues.

Libya has the ninth-largest known oil reserves in the world and the largest oil reserves in Africa.