Libya’s National Oil Company has declared force majeure on eleven oilfields
Libya’s state-run National Oil Corporation (NOC) declared force majeure on eleven of its oilfields Wednesday due to the deteriorating security situation in the country, reports Reuters. The country’s oilfields are being increasingly targeted as rival governments seek to gain control of the country’s main source of income.
In a statement posted on its website, the NOC said it was no longer able to ensure security in the eleven fields in the central portion of the country. The decision to declare force majeure on the oilfields guarantees legal protections from claims against any future disruptions.
The oil assets covered by the force majeure include Mabrouk, Dahra and Bahi, which security officials said were overrun by Islamist militants earlier this week after security forces guarding the installations were forced to retreat. Both Mabrouk and Bahi oil operations were empty after staff was evacuated earlier.
Mabruk once produced 30 to 40 MBOPD and is operated by a joint venture between Libya and Total (ticker: TOT). Bahi and Dahra are operated by a partnership with Marathon Oil Corp. (ticker: MRO), Hess Corp. (ticker: HES) and ConocoPhillips (ticker: COP), reports The Wall Street Journal.
Even before these most recent attacks, Libya’s production was down 80% from its 2011 output. NOC’s inability to maintain control over its assets has directly impacted its oil production, which accounts for 90% to 95% of the country’s revenue.
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