Libya’s East Government May Declare Force Majeure on Oil Fields, Ports

Libya’s eastern government plans to declare force majeure on oil fields and ports due to assaults on the National Oil Corporation. Despite being unrecognized internationally, this government controls most oil production through Khalifa Haftar’s forces. The NOC asserts normal operations, disputing claims of disruption, even as the country’s oil output fluctuates amidst ongoing political strife.

The eastern-based government of Libya announced plans to potentially declare force majeure on the nation’s oil fields and ports. This declaration comes in response to ongoing “repeated assaults” on the National Oil Corporation (NOC), an entity that has been a focal point of conflict. Benghazi’s government, although not recognized internationally, controls most of Libya’s oil production, particularly through the military leadership of Khalifa Haftar.

Additionally, the eastern government suggested that it might temporarily relocate the NOC’s headquarters to safer areas like Ras Lanuf or Brega, both of which fall under its control. Currently, the NOC operates from Tripoli, where it is managed by the internationally acknowledged Government of National Unity (GNU).

The NOC, however, has firmly denied claims of any disruptions, calling the news “completely false.” It stated that operations are running normally and that it continues to fulfill crucial functions without interruption. The acting head of the NOC, Hussain Safar, clarified that the supposed disturbance stemmed from a minor personal issue, swiftly handled by security personnel, causing no impact on corporate operations or employee safety.

In contrast to the NOC’s assertions, the GNU’s media office released video evidence from inside NOC headquarters portraying stable conditions, with no traces of disturbances reported.

The instability within Libya’s political landscape has previously undermined its oil production, especially since the country became split between two competing authorities following the NATO-backed uprising that led to the fall of Muammar Gaddafi in 2011.

Notably, Libya’s oil production suffered a significant setback in August, losing about 700,000 barrels per day due to a standoff over the central bank. This situation resulted in halted exports at multiple ports, creating a month-long crisis that only saw production gradually resume from early October. As of the last 24 hours, the NOC reported that Libya’s crude oil production had rebounded to 1.3 million barrels per day.

The announcement by Libya’s eastern-based government regarding a potential declaration of force majeure highlights ongoing tensions surrounding the National Oil Corporation. With the eastern authority gaining control of most oil resources under Haftar’s leadership, the situation remains complex. The NOC seeks to counter claims of workplace disruptions while managing its operations amidst a backdrop of political instability that has historically plagued Libya’s oil production.

Original Source: www.newarab.com