Libya’s NOC declares force majeure over PFG forces at Sharara oil field

Libya’s National Oil Corporation (NOC) has declared force majeure on crude oil loadings from the country’s biggest oil field due to a forced shutdown caused by the presence of militia, it said Monday.

NOC demanded that the armed militia claiming attachment to the local Petroleum Facilities Guard (PFG) immediately withdraw from the Sharara field without “pre-condition.” “The shutdown of Sharara will result in a daily site production loss of 315,000 b/d, with an additional loss of 73,000 b/d at El Feel due to its dependence on Sharara for electricity supply,” NOC said in a statement.

Operations at the Zawiya refinery are also at risk due to their dependence on Sharara and the refinery “will cease producing essential fuels for local consumption unless alternative supply is identified,” it said. The “unnecessary shutdown” at Sharara will cost the Libyan economy $32.5 million/day, NOC said. The PFG occupied the field on Saturday with the help of locals. The country’s southern region is suffering from severe economic conditions and frequent power outages.

Source: S&P Global Platts



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