East Libya Oil Exports Grind to Halt

  • 7/3/2018
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Libyas oil exports from its production heartland in the east ground to a halt on Monday in a financial showdown between the countrys rival political administrations. The National Oil Corporation said all exports have been suspended from the oil crescent after operations were frozen at the terminals of Al-Hariga and Zweitina. The NOC declared force majeure on crude oil loadings at the ports. Exports from the regions two other ports, Ras Lanuf and Al-Sidra, were already suspended on June 14, Agence France Presse reported Libya has been wracked by chaos since the 2011 uprising that toppled and killed Muammar Gaddafi, with two rival authorities vying for control. There is the UN-recognized Government of National Accord (GNA) in the capital Tripoli, while another government in the east is backed by Libyan National Army (LNA) chief Khalifa Haftar who controls the oil crescent region. The LNA said last week that it would hand the installations and their revenues to an eastern administration that rivals the UN-backed GNA. This prompted the NOC to ask firms with which it has contracts to stop working with the rival oil corporation in the east. "The storage tanks are full and production will now go offline," NOC chairman Mustafa Sanallah said on Monday. The suspension amounts to a $67.4 million a day loss in Libyas heavily oil-dependent public revenues, according to the NOC. A force majeure is a status that frees parties to a contract from their obligations due to circumstances beyond their control.

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