Libya NOC declares force majeure on Sharara crude oil loadings following Zawiya explosion

The state oil company's chairman has said that the incident is being investigated

Libya noc, Zawiya, Sharara, Obari

Libya NOC has declared a state of force majeure on Sharara crude oil loadings at Zawiya port as of July 20, 2019. The company released a statement noting that the closure is "the result of an unlawful Sharara pipeline valve closure by by an unidentified group between Hamada and the Zawiya port."

"Criminal activity has required NOC to declare Force Majeure at Zawiya," said NOC Chairman Mustafa Sanalla. "Deliberate attempts to sabotage pipelines and production hurt both national oil revenues and critical power supply for everyday Libyans."

Approximately 290,000 barrels per day will be offline, which Libya NOC estimates at a value of $19mn per day. Crude oil supply to the Obari power station will stop, as supply from Sharara to the plant requires that a continuous amount of crude to the plant's storage tank, which is full. However, production at El Feel oilfield, near Sharara, has not been affected. 

The gap in refinery feedstock will be filled by international fuel imports, which Libya NOC says will cause "additional deficit in the fuel budget."

"Akakus security personnel and engineers are investigating the incident and working to quickly restore production," Sanalla added. "The corporation, in partnership with relevant authorities, will find and prosecute those responsible for this unnecessary interruption."


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