Libyan national Oil Company declared state of emergency

Libyan national Oil Company declared state of emergency

Libya will lose $55 million per day 

The Libyan oil company has declared state of emergency after forces loyal to General Khalifa Haftar blocked the eastern ports of country. This move has halted the export of Libyan oil.  According to the National Oil Corporation (NOC)- the militia that control major export terminals has asked the companies operating in the area to close the operations.  

The move makes any oil export from Libya impossible, the company then warned, adding that it would lead to losses in crude oil production amounting to 800,000 barrels per day as well as daily financial losses estimated at about $ 55 million.

The militia known as Petroleum Facilities Guard was formed in the chaos of the Libyan conflict in 2012-to protect the oil facilities. This militia took control of the export terminals in 2013. This militia now affiliated with General Haftar’s forces (Libyan National Army) had the history of changing loyalties. It was supporting the UN backed Government of National Accord (GNA). It was also used to sell oil to earn extra money.

The move comes less than a week after the leaders of two major Libyan warring parties met in Moscow to discuss a ceasefire between them. Although Haftar and Fayez al-Sarraj, the GNA prime minister, eventually failed to reach an agreement, both sides still respected the truce, at least until now.

The ports’ closure also took place just a day ahead of the next Libya peace summit that is due to be held in Berlin and is expected to be attended by representatives of major powers and Libya's rival camps again.

 The UN Support Mission in Libya expressed its “deep concern” over disruption of oil production. The UN officials warned about “devastating consequences” such move would have for the nation’s economy and its people and urged all sides to “exercise maximum restraint.”

Oil revenue is the life line of Libyan economy. Major disruption of oil supply means fewer revenues for the national government. Libya has been engulfed in a civil war since 2012. The country is divided on tribal and regional lines. Different forces are controlling different areas and regions as central government lost control over the country since the fall of Qaddafi regime.
                                                      Monitoring desk                              

No comments

Note: Only a member of this blog may post a comment.

Powered by Blogger.