In Libya, the closure of oil operations resulted in losses of more than $ 8 billion for public funds between January and August. The situation has also created power cuts in the East, where the populations are hit hard by the strong summer heat.
Libyan state-owned petroleum company (NOC) said financial losses related to the oil blockade that has been going on in the country since January, reached $ 8.36 billion as of August 15, 2020.
The blockade imposed by the Libyan national army of Khalifa Haftar is exerted in particular on the production facilities upstream and the ports of the oil crescent. The country currently produces less than 500,000 barrels per day of oil.
In addition to the financial losses, the NOC indicated that the blockade is at the origin of the power cuts in the eastern part of the country. Indeed, the ports of the Gulf of Sirte are the major point of gas supply to the power stations in the region. However, they are also closed.
“The closure of the ports in the Gulf of Sirte will reduce the supply to the port’s condensate reservoirs, which will end the transport of associated gas and condensate, which feed the power plants in Zueitina and north Benghazi” , the company explained. Such a reduction in the electricity supply in a context of summer heat accentuates the dissatisfaction of the populations.
Once again, the NOC called for the immediate lifting of the blockade.
Source: Agence Ecofin