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OIL AND GAS
Libya declares force majeure on 11 central oilfields
by Upi Staff
Washington (UPI) Mar 5, 2015


disclaimer: image is for illustration purposes only

Libya declared force majeure on 11 oilfields after a series of Islamic State attacks on facilities in the country's central region.

The state-owned National Oil Corp. posted a statement on its website declaring force majeure, saying it could no longer ensure production at the facilities due to the deteriorating security situation. The move frees the company of liability.

Two fields, Bahi and Mabruk, had been attacked last month and were seized again Monday and Tuesday by unknown militants. Gunmen at Mabruk claimed to represent the Islamic State militant group. A third field, Dahra, was attacked late Tuesday.

Col. Hakim Maazab, who commands oil guards in the region, said Wednesday the militants had withdrawn from Mabruk, after destroying oil tanks and a control room. IS militants elsewhere retreated from oilfields after setting them ablaze.

Libya has been embroiled in civil war since the 2011 uprising against dictator Moammar Gaddafi. Two rival governments -- the internationally recognized government and the rebel government Libya Dawn, which took over Tripoli last summer -- have been conducting airstrikes against each other as multiple rebel militias operate in the country.

Libya was producing around 1.2 million barrels of oil per day before NATO forces entered the country to protect civilians from attacks by Gaddafi loyalists. The Organization of Petroleum Exporting Countries said the member state was producing around 343,000 bpd as of January, a 27 percent decline from December. National Oil Corp. reported recent production gains despite the attacks due to resuming operations at the Sarir field.

U.S. Ambassador to Libya Deborah K. Jones wrote in the the Libya Herald in February that the country may go broke if oil continues to get caught in the cross fire.


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