Libyan National Oil Corporation (NOC) declared a state of force majeure on crude oil loadings at Zawiya port beginning on July 20. This is because of an unlawful Sharara pipeline valve closure by an unidentified group between Hamada and the Zawiya port, suspending production. However, today (July 22), NOC announced that it lifted the force majeure.
When NOC declared the force majeure, about 290,000 barrels per day (bpd) were forced offline, thus preventing NOC from carrying out crude oil loadings at the terminal.
Any local market fuel deficit as a result of the refinery feed stock shortfall will be offset by international fuel imports, thereby causing additional deficit in the fuel budget. Production at the El Feel oil field near Sharara is unaffected
NOC stated.
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As a result, NOC informed that crude oil supply to the Obari power station would stop after this production interruption. Supply from Sharara to the Obari power plant requires the transfer of a continuous amount of crude to production plant (A)’s storage tank – which then was full.
In addition, commenting on the development, NOC Chairman Eng. Mustafa Sanalla, noted that:
Criminal activity has required NOC to declare Force Majeure at Zawiya. Deliberate attempts to sabotage pipelines and production hurt both national oil revenues and critical power supply for everyday Libyans
However, on July 22 NOC announced that it lifted the force majeure on Sharara crude oil loading from Zawiya port, after the opening of a closed valve on the pipeline connecting the Sharara oilfield to the Zawiya terminal.
Namely, Valve 13 was reopened on July 21, while tests were conducted along the pipeline by NOC and Akakus Oil Operations technical teams to ensure all valves are now working. Oil production and operations restarted at 4.27am local time.
NOC reiterated that it condemns this as yet unclaimed deliberate act of sabotage, with relevant authorities searching for the perpetrators.
