According to four oil engineers and the Libyan Ministry of Oil, production resumed in the Sharara and El Feel oil fields, late Saturday evening. This is following their shutdown since Thursday, after the kidnapping of a former finance minister.
The El Feel field produces 70,000 barrels per day, and is operated by the Mellitah Oil & Gas Company, a joint venture between the National Oil Corporation (NOC), and Italy’s Eni.
Two oil engineers at the Sharara field stated that production will return to its normal rate on Sunday morning, after partially resuming operations late Saturday. It produced 30,000 barrels per day, out of the usual 290,000 barrels, following the shutdown due to the kidnapping of the former finance minister.
The Sharara field is one of the largest oil-producing fields in Libya, with a capacity of 300,000 barrels per day. It has often been a target for protesters amid political disputes. The field is located in the Murzuq Basin in southern Libya, and is operated by the NOC through Akakus, in partnership with Repsol of Spain, Total of France, OMV of Austria, and Equinor of Norway.
On Saturday, Libya’s Ministry of Oil and Gas said that the continued closure of three oilfields could lead to the declaration of a force majeure. The ministry’s announcement comes a day after the fields were shut in protest against the abduction of a former finance minister.
In a statement, the Ministry voiced its “deep concern about the shutdown of some oilfields, confirming that the consequences and implications of such closures have been highly significant for Libya.” It pointed out that the “aftereffects of such closures are manifold and severe, making it increasingly difficult to enumerate all the potential risks and damages they could cause.”
The Ministry drew attention to the fact that the recent closures could have “profound impacts and hazards of oilfield shutdowns, particularly on Libya’s oil market. A loss of trust in the reliability of Libya’s oil supply to the international market could result in unsold Libyan oil, decreased demand, or the potential permanent loss of Libyan oil importers. This outcome is largely driven by the fear of unstable supplies, our incapability to honour contracts and agreements, and the negative implications for nations involved with Libya in production quotas, who would be significantly affected by this interruption.”
Among the repercussions is the “undermining of the Ministry’s rigorous efforts to convey to the world that Libya maintains substantial stability in oil production, coupled with solid security conditions.”
Such efforts are manifested in broad-ranging meetings with international diplomatic missions and entities via OPEC, and other global organizations. However, convincing certain international actors about Libya’s distinctive status in this domain may become increasingly challenging.
The Ministry also noted that the closures would result in a deficit in supplying gas to power stations. This may lead to a resurgence of severe electricity shortages, load shedding, and disruption in social and economic life.
