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By Sami Zaptia.
London, 2 July 2018:
Libya’s National Oil Corporation (NOC) has declared force majeure on crude oil loadings at Hariga and Zuetina oil terminals today. ‘‘This suspension of obligations’’, the NOC said is in addition to the state of force majeure at the Ras Lanuf and Es Sider terminals. Despite warning from the NOC of the consequences of ongoing blockades, the Libyan National Army (LNA) General Command has declined to rescind its order that no vessel be allowed to port to receive allocated shipments, the NOC said in its statement.
“Despite our warning of the consequences and attempts to reason with the LNA General Command, two legitimate allocations were blocked from loading at Hariga and Zuetina this weekend. The storage tanks are full and production will now go offline.”, NOC chairman Mustafa Sanalla was quoted as saying.
In its statement, the NOC said it calls on the LNA General Command to lift the blockade and allow the NOC, the only recognised Libyan entity responsible for the exploration, production and export of oil products, under both Libyan and international law, to do its job of providing for the Libyan people. The NOC has always advocated for the equitable distribution of national oil revenue, it added.
The NOC confirmed that Libya’s total daily production loss amounts to 850,000 bpd of crude, 710 million standard cubic feet per day (MMSCFD) of natural gas, and more than 20,000 bpd of condensate. The total daily revenue loss associated with this latest shutdown is estimated at $67.4 million. The financial loss to the public purse since the attack on Es Sidra and Ras Lanuf on 14 June by Ibrahim Jadran is more than $650 million, the NOC reported.
