Libya’s National Oil Corporation (NOC) has declared a force majeure at its Sharara oilfield, capable of producing 300,000 barrels per day, due to ongoing protests.
This declaration, effective immediately, has disrupted oil output at the field, halting crude oil supplies to the Zawiya terminal, as stated by NOC.
The Sharara field, a major asset for Libya, has faced frequent disruptions due to local and wider political protests. Located in the Murzuq basin in southeast Libya, it’s managed by NOC through the Acacus company, involving partnerships with Repsol from Spain, Total from France, OMV from Austria, and Equinor from Norway.
Negotiations are underway to swiftly resume production, NOC has reported. The recent closure was prompted by demonstrators in the Fezzan region in the south demanding better public services and development projects.
The country’s oil and gas ministry expressed concerns about the impact of these disruptions on global oil markets, highlighting the difficulties in resuming production due to technical issues, maintenance requirements, time, and associated costs borne by Libya.
Earlier in July, tribal protesters halted production at the Sharara, Elfeel, and 108 fields following the abduction of a former finance minister.
