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Libyan oilfields go off production as militias cause pipeline outage

A local Libyan brigade closed down two valves on a pipeline to Sharara oilfield, the country’s largest, to make demands for more fuel supplies and better economic conditions for the Zintan region

Pipeline blockades by Libyan militia brigades making economic demands have closed down three oilfields and forced state-run National Oil Corporation (NOC) to declare force majeure at several sites, Reuters has reported.

A local Libyan brigade closed down two valves on a pipeline to Sharara oilfield, the country’s largest, to make demands for more fuel supplies and better economic conditions for the Zintan region, a source in Zintan told Reuters.

Sharara, which was producing around 280,000 barrels per day (bpd), had been shut a week ago, engineers said, and NOC declared force majeure on loadings of Sharara crude from the Zawiya oil terminal, according to a company document.

Another field, El Feel, has also been shut because of the pipeline blockade, and NOC has declared force majeure on Mellitah crude exports due to the closure, two Libyan oil sources told Reuters.

Another brigade tasked with oil facilities protection has closed a pipeline leading to the Hamada field. NOC had also declared force majeure there and the field would possibly close down after the declaration, a spokesman for state company AGOCO said.

Hit by protests, militant violence and pipeline shutdowns, Libya’s crude production has at times fallen below 300,000 bpd, far from the 1.6mn bpd the North African state produced before the 2011 uprising.

NOC had more recently managed to bring production back up to around 1mn bpd, its highest in four years, after successfully managing to negotiate settlements with local communities and brigades.

Staff Writer

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