National Oil Corporation warns of repercussions of production halt at three sites
Tunis, Sept 15 (KUNA) -- The National Oil Corporation (NOC) of Libya warned today, Tuesday, of the repercussions of the closure of a main valve in the Al-Hamada area in the west of the country, and halted production and operations at three oil sites, announcing force majeure if the closure persists or if forced shutdowns extend to other fields.
In a statement, the NOC said that a group of facility guards carried out, in what it described as an "illegal" manner, the closure of the main oil shipping line valve connecting Al-Hamada and Al-Zawiya on Tuesday morning. The corporation added that the valve closure caused a sudden pressure spike at the Al-Tahara field point on the production lines, leading to a complete halt of production and operations at the Al-Hamada, Al-Tahara, and Al-Mahatta fields.
The NOC cautioned that the continued closure of oil fields and facilities could damage Libya’s reputation as a stable energy supplier in global markets, at a time when the country is striving to maintain its oil production and export levels. It considered that these developments inflict "serious damage" on the national economy and on oil field operations, warning of their impact on the Libyan oil sector amid rising global crude prices.
The corporation expressed its rejection of threats it said were issued by parties in the protests to close the North Al-Hamada field, operated by Nafusa Oil Company, or any other fields and wells in various parts of the country, in protest against demands whose nature was not specified in the NOC’s statement.
The NOC called on protesters to abandon the closures and resort to legal means to assert their rights, warning that the continuation of these movements could exacerbate the disruptions affecting the oil sector, which is the main source of state revenue in Libya.
It stated that it may be forced to declare force majeure if the closure of the Al-Hamada-Al-Zawiya line valve persists or if other fields are subjected to similar forced closures, calling on Libyan authorities to assume their responsibilities and intervene to address the crisis and resolve its causes.
This warning comes amid the continued heavy reliance of Libya’s public finances on oil revenues, meaning that any prolonged disruption in production or crude exports would have direct repercussions on state revenues and the government’s ability to meet its financial obligations, including paying the salaries of public sector employees, according to the NOC. (End) S.B.M. / R.J.
