Libyan Cloud News Agency – Tripoli
The National Oil Corporation has released the public information notice on oil fields closure which started on January 17.
1. Hariga, Brega, Sidra and Ras Lanuf ports are closed and under force majeure. This was declared after instructions to halt exports were given on 17 January 2020 to NOC operating subsidiaries by Major General Nagi al-Moghrabi, the commander of PFG appointed by the LNA, and Colonel Ali al-Jilani from the LNA’s Greater Sirte Operations Room.
2. These ports have limited storage capacity, and NOC will be forced to shut crude oil production when it is filled.
3. After the declaration of force majeure on all loadings from Zueitina, Hariga, Brega, Es Sider and Ras Lanuf ports, following these instructions to halt exports, NOC is unable to load a scheduled cargo of liquid petroleum gas (LPG) destined for Benghazi.
4. Benghazi storage facility contains 12 days of LPG supply, and NOC is taking measures to ensure continuity of supply.
5. Benghazi port remains open. The NORDIC PIA tanker, which is carrying diesel, is being discharged in Benghazi. The ATLANTIC SIRIUS tanker, which comes from the Zawiya refinery, also arrived at the Benghazi port today.
6. The shutdown of associated gas production, used to supply power plants in Zueitina and North Benghazi, will result in power shortages that will lead to load shedding.
7. The closure of valves in the Hamada pumping station on 19 January 2020 by the PFG resulted in the declaration of force majeure and shutdown of production from the Sharara and El Feel oilfields. This caused the suspension of supplies to the Bari power plant and will eventually cause it to stop when it runs out of stock.
8. Production from the Hamada oilfield was shut down on 20 January 2020.
9. Crude oil production rates are being reduced where possible to avoid a total shut down of production. Shutdown of all affected oil fields will result in a loss of crude oil production of 1.2 million b/d and daily financial losses of approximately $77 million.
Force majeure is a contractual clause that frees NOC from its legal obligations to supply oil or gas to customers when faced with circumstances outside its control, including war, strikes and bad weather. Force majeure is generally lifted when the circumstances that led to it being imposed are removed. Force majeure cannot be selectively applied to customers.