Libya’s state National Oil Corporation (NOC) confirmed in a very short statement today that its ‘‘operations are proceeding as usual across all offshore and inshore locations’’.
The statement contradicts the claim made by the Petroleum Facilities Guards (PFG) yesterday that they had closed several western Libyan based oilfields, pipes and installations. The PFG are the security forces charged with guarding all of Libya’s oil installations.
The closures announcement by the PFG had spiked the black-market currency market, sending Libya dinar crashing further in value against the major hard currencies.
The dinar broke the LD 8 to the dollar mark yesterday – the first time it has reached that rate for nearly 10 years. Tripoli government backed security forces had entered the main currency black-market in the Old City forcing its closure. Traders were still able to trade at a lower turnover though through their private WhatsApp pages – driving the price to over LD 8 per dollar. Today the LD recovered to around 7.77 to the dollar.
The PFG had given the Tripoli based Libyan government, headed by Abd Alhamid Aldabaiba, 10 days to implement their demands, which they say are guaranteed by Libyan law. But the government had failed to respond in time.
As a result, they announced the closure of production at the Zawiya refinery and its port, the Mellitah complex and its port and shut off the Green Stream gas pipeline to Italy. This included the shutdown of the Al-Feel and Al-Wafa fields.
They further announced that production will be stopped gradually Al-Sharara, in addition to the Al-Watiya and Nalut pipelines.
The PFG say they are demanding their legitimate rights as prescribed by a court ruling in 2007 – a ruling to which successive governments have not responded.
They reported that last December, Prime Minister Aldabaiba had promised to meet their demands ‘‘within a short period’’ but failed to act. They say they had warned him that if there was no response, the oil fields would be closed.
Aldabaiba’s offer initially rejected
Late yesterday Aldabaiba issued a decree raising the PFG pay by linking it to a specific military payscale. However, the PFG had initially rejected it, reminding that they are part of the National Oil Corporation and not of any military entity.
Negotiations with the Tripoli based government are ongoing.
