Libya: Production to resume at Sharara oil field
Libya’s National Oil Corporation (NOC) declared the resumption of production at the Sharara oil field on January 29th, according to AFP.
The development comes two weeks after a declared “force majeure” halted operations due to protests at the facility, leading to a 300,000 barrels-per-day drop in the country’s crude oil extraction.
Sharara is Libya’s largest oil field, located 900 kilometres (560 miles) South of Tripoli and operated by a joint venture between the NOC and four European companies.
READ: Libya: Oil field closures threaten $20.69 bn annual revenue
“Force majeure” allows parties, such as the NOC, to free themselves from contractual obligations when extenuating factors make meeting them impossible. It was initially declared by the NOC on January 7th, when protests over fuel shortages, jobs, and infrastructure development forced the closures of Libya’s El-Feel and Sharara oil facilities.
Early on January 29th, the Fezzan Gathering protest group, announced an end to their action via Facebook, stating: “In an agreement with the president of the NOC, in which he vowed to concede to demands… we announce the suspension of our sit-in at the Al-Sharara field.”
The details of the accord remain unclear although the protesters claim to have received “guarantees” from Khalifa Haftar, a military strongman aligned with Libya’s Benghazi administration.
After over a decade of internal conflict following the NATO-backed toppling of the Gaddafi regime in 2011, Libya remains split between rival administrations in its East and West, each backed by local militias and foreign powers.
Libya holds Africa’s largest oil reserves and its oil revenues account for over half of the country’s GDP. Conflict and instability have led to regular disruptions to oil production over the past decade. The NOC are one of the country’s few functional institutions to have survived the turmoil.
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AFP
