Closure of oil wells and ports continues due to instability in Libya
Tribal pressures for the Libyan Government of National Unity (GNU) to cede power today forced the closure of the port of Brega, the third closed since Saturday, and the interruption of production of new wells, which yesterday affected Al Sharara, the largest in the country.
"Libya's crude oil is being subjected to a wave of illegal shutdowns, which will result in serious damage to wells, reserves and equipment for the oil sector, as well as the loss of state treasury opportunities at prices that may not be repeated for decades to come," the National Oil Company (NOC) said in response to the rising price on the markets.
Tribal factions demanding that GNU's Abdul Hamid Dbeibé hand over power to Fathi Bashagha, who was appointed prime minister in parallel by the Tobruk (east) parliament, have blocked access to workers at various terminals, forcing production and exports to be halted since the weekend.
The NOC has so far announced the suspension of the ports of Mellita in the west of the country, Zueitina and Brega in the east, and production at the El Feel, Sharara, Abuatufol, Al Intisar, Anakhla and Nafura fields, among others.
"The fourth wave of shutdowns affects Brega crude," the corporation said today, which has again declared "a state of force majeure" due to "inability to implement its commitments to the oil market".
The NOC warned of the consequences of this blockade "at a time when oil prices are recovering significantly due to increased global demand, which is being exploited by all producing countries to increase their oil revenues".
The impact on the energy sector, which feeds domestic demand, is also affecting the supply of the public grid, especially in the eastern region, as most of the power plants are fuelled by gas produced in these fields.
The national company insists on keeping the oil sector, almost Libya's only source of income, out of the political conflicts that since 2011 have been the target of rivalries between militias and governments.
