Libya’s NOC declares force majeure in country’s largest oilfield

By Moataz Wannes

TRIPOLI, Libya (AA) – Libya’s National Oil Corporation (NOC) on Monday declared force majeure on oil exports from the El-Sharara oilfield.

In a statement, the state-owned company said oil production was halted until further notice after a group of people entered the facility and prevented employees from working. It did not, however, identify this group of people.

Declaring force majeure allows the company to exonerate itself from legal responsibility regarding its commitments to clients.

El-Sharara oilfield produces more than 300,000 barrels of crude oil per day, forming roughly one third of the oil-rich country's production.

Earlier Monday, the NOC declared force majeure in the Zuwetina oil port in central Libya. A similar announcement was made by the company on Sunday for oil exports from El-Feel oilfield.

On Sunday, tribal leaders announced halting oil production in southern and central Libya until Prime Minister Abdul Hamid Dbeibeh hands over power to the newly appointed government of Fathi Bashagha.

They also called for the sacking of Mustafa Sanalla, head of the NOC, and for the appointment of a new board for the company.

Libya holds Africa’s largest crude reserves, but 11 years of conflict in the country since the 2011 ouster of ruler Muammar Gaddafi has hobbled production and exports.

Tension has mounted in Libya since parliament last month gave confidence to a new government headed by Bashagha, a former interior minister, while Dbeibeh insists on remaining at his post.

* Writing by Ahmed Asmar