Libya’s National Oil Corporation (NOC) declared force majeure on operations at el Sharara oil field, in a late statement on Monday.
Chairman Mustafa Sannallah said in the statement published on the NOC’s facebook page that the company can not resume work under the same unstable security situation that was existing before the oil field closure.
He stressed that oil production from Libya’s biggest oilfield will only restart after “alternative security arrangements”, according to NOC statement.
A week earlier, NOC declared force majeure on el-Sharara oilfield exports after armed groups seized it.
NOC demanded these groups to “immediately leave the field without preconditions.” It said it was also “reviewing” evacuation plans to protect the oilfield’s workers from any threats after some armed groups and tribesmen claiming to be attached to the Libyan Petroleum Facilities Guard (PFG) seized the place.
The statement, issued then, did not mention whether staff had actually left the site.
The Libyan tribesmen and the armed groups called themselves the Fezzan Anger Movement.
NOC stressed that it will not negotiate with these groups as they have committed many violent acts, insulted the workers at the field, and disrupted production.
Further, it expressed concern about the failure of PFG to shoulder its responsibility for protecting Libya’s oilfields and workers, referring that they have covered, instead, many crimes committed by armed groups.
Meanwhile, the Fezzan Anger Movement shut el-Feel oilfield in southwestern Libya as well and threatened to escalate the situation due to the inaction of the NOC toward their demands.
NOC said in a statement the shutdown of its biggest oilfield would result in a production loss of 315,000 barrels per day (bpd) at the site, and an additional loss of 73,000 bpd at the Feel oilfield.
Sharara also provides 120,000 bpd for Zawiya oil refinery in the west of the country, which is the largest operating refinery alongside being one of Libya’s main export grades.
Hence, the company said that production at the Zawiya refinery was also at risk due to its dependence on crude oil supply from Sharara.
After the 2011 uprising, armed groups, tribesmen and regular Libyans tend to vent their anger about inflation and a lack of infrastructure on the NOC, which they see “as a cash cow booking billions of dollars in annual oil and gas revenues,” according to Reuters.
Since Saturday, December 8, Libyan tribesmen have protested at Sharara oilfield and threatened to cease production until their demands are fulfilled.
The movement demands securing of the road linking al-Jafra and al-Shuwairf towns to Fezzan, preserving Fezzan’s water and oil resources, and providing basic medical needs including equipment for Fezzan’s hospitals, according to the group’s spokesperson Mohammad Maighal.
Living conditions in Fezzan have deteriorated over years due to tribal clashes and a lack of security.
The field in Libya’s remote southwest produces around 300,000 barrels per day (bpd). It has suffered shutdowns caused by security problems, including raids, kidnappings and blockages by tribesmen and state-paid guards.
