Libyan NOC formally declares force majeure at key ports
Libya's state-owned NOC has formally declared force majeure on operations at the eastern ports of Es Sider and Ras Lanuf and at the El Feel oil field, as protests and blockades continue to curb the country's crude production and exports.
Some clients were informed of the force majeure at Es Sider and Ras Lanuf earlier this week, while El Feel has been shut down by protesters since 17 April.
Operations are also disrupted at the Sarir field and the Zueitina and Marsa el-Brega terminals. Libya's largest oil field, the 300,000 b/d El Sharara, remains under force majeure, although it is operating at reduced capacity.
The demonstrations have driven Libyan crude exports down to between 365,000 b/d and 409,000 b/d, a decline of 865,000 b/d from "production rates in normal conditions", NOC said on 30 June.
The company estimates that the disruption in recent months has led to 16bn Libyan dinars ($3.3bn) of lost revenue. The shutdowns have also left NOC unable to feed the Zueitina, North Benghazi and Sarir power stations with natural gas.
The protesters are demanding a transfer of power from Abdelhamid Dbeibeh's Government of National Unity (GNU) to Fathi Bashagha's Government of National Stability (GNS). They are also calling for the dismissal of NOC chairman Mustafa Sanalla and for the fair distribution of NOC revenues. Sanalla has warned against using oil production as a political bargaining chip.
The GNU's oil minister Mohamed Aoun won Dbeibeh's approval last month to shuffle the NOC board, although it is unclear if NOC will recognise his authority to do so. Aoun, who has previously tried unsuccessfully to remove Sanalla from his post, has criticised NOC for its failure to communicate production figures since the latest round of blockades began in April.
Aoun said on 13 June that Libyan crude output had dropped to just 100,000 b/d but then raised his estimate to 700,000 b/d a week later. NOC said the 100,000 b/d figure was wrong but did not provide its own estimate.
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