Libya Threatens Force Majeure as Oil Guards Shut Fields
The guard said it will cut output for a week and may shut more fields unless Libya’s oil security force is moved under the National Oil Corporation.
- On Tuesday, the National Oil Corporation threatened to declare force majeure after the Petroleum Facilities Guard closed a valve on the main Hamada-Zawiya crude pipeline, halting production at the Hamada and Tahara oilfields.
- Demanding administrative and financial transfer to the NOC, the Guard is utilizing oil infrastructure as leverage, continuing a tactic employed by factions since the 2011 uprising that toppled Muammar Gaddafi.
- Partial production cuts lasting one week are planned at Wafa, Al-Khamsa, and El Feel, with current output standing at roughly 1.4 million barrels per day threatened by escalation.
- Reaching the 1.6 million barrels per day target by 2026 requires up to $40 billion in foreign investment, according to NOC Chairman Masoud Suleman, with Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL recently signing agreements.
- With a $2 billion budget allocation for production plans, the NOC warns a full shutdown could follow if demands remain unmet, potentially disrupting operations for firms like BP, Shell, Exxon, and Chevron.
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The president of the company, the National Oil Corporation: "The production of Libya has not suffered serious repercussions and it stands on about 1.4 million barrels a day"
Production at oil fields in the west of the country has stopped when the Oil Facilities Guards in Libya shut off the valve of the Hamada-Zawiya main oil transport line. On global markets, Brent crude rose about 3 percent to $108.
The Media Line: Libya Oil Security Force Shuts 2 Fields, Threatens Full Production Halt - Regional Media News
Libya Oil Security Force Shuts 2 Fields, Threatens Full Production Halt By The Media Line Staff A dispute over control of Libya's oil security force disrupted crude production Tuesday, with guards imposing shutdowns and threatening broader cuts unless authorities agree to move their agency under [...]
The National Petroleum Corporation of Libya warned of the serious consequences of shutting down the main oil pipeline valve.
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