The National Oil Corporation (NOC) of Libya announced the suspension of production at the nation’s largest oil field, Al-Sharara oilfield, following the forced closure of the facility by protesters demanding action on fuel shortages. The NOC revealed this development in a statement released on Sunday.
According to the oil company, the closure of Al-Sharara has led to the suspension of crude oil supplies from the field to the port of Al-Zawiy on the Mediterranean coast, impacting the country’s oil production and export capabilities.
Reports indicate that residents of the desert town of Ubari, situated approximately 950 kilometers (590 miles) south of the capital Tripoli, initiated the shutdown of the field to protest fuel shortages.
The protesters also demanded the rehabilitation of infrastructure and the repair of roads in the southwestern region of Fezzan, one of Libya’s three historic provinces.
In response to the ongoing situation, the NOC has declared a force majeure in the country’s southern region effective Sunday. Force majeure is a legal provision that releases a company from its contractual obligations due to unforeseen and extraordinary circumstances.
Libya generates more than 1.2 million barrels of oil per day, and the Al-Sharara as the country’s largest oilfield, has the capacity of up to 300,000 barrels per day.
The NOC has however confirmed ongoing negotiations with the protesters in an effort to reach an agreement that would allow the resumption of production at Al-Sharara as soon as possible. .
By xamse
January 8, 2024
