Libya’s National Oil Corporation (NOC) has officially declared a state of force majeure at the El-Feel crude oil field, effective from September 2, 2024. This decision comes in response to recent disruptions in production that have significantly impacted the corporation’s operations.
Disruptions at Mellitah Crude Oil Production
In a statement, the NOC explained that ongoing challenges at Mellitah crude oil production have made it impossible to carry out scheduled crude oil loading operations. The NOC emphasized that these issues are beyond its control, prompting the declaration of force majeure. The corporation clarified that this measure specifically applies to the El-Feel oil field.
Impact on Other Operations
The NOC reassured that the force majeure declaration does not extend to the loading of other hydrocarbons. The corporation has committed to updating the public and relevant stakeholders once the conditions leading to the force majeure are resolved, and operations at the El-Feel field can return to normal.
The Central Bank of Libya Crisis
This forced closure of the El-Feel oil field is a direct consequence of the ongoing crisis at the Central Bank of Libya (CBL). The situation has been exacerbated by actions taken by the eastern-based Hafter regime, which has significantly affected Libya’s oil production.
On August 29, the NOC reported a loss of US$120.3 million over just three days, from August 26 to August 28. During this period, Libya’s oil production plummeted from approximately 1.2 million barrels per day (bpd) to just 591,000 bpd by August 28.
The NOC’s declaration of force majeure at the El-Feel oil field underscores the severe impact of the ongoing political and economic crisis on Libya’s vital oil sector. The corporation remains vigilant and is working towards restoring normal operations as soon as possible.
