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Libyan National Oil Company: Sirte Gulf oil exports may be suspended for the next three days

Libya's National Oil Company said Libyan authorities may block exports from Sirte Gulf for the next three days as the political crisis worsens. Es Sider, Ras Lanuf, Brega and Zueitina along the Sirte Gulf are all major ports for oil exports.

According to a June 27 statement, the Libyan National Oil Company said it could announce within 72 hours that shipments would be halted due to force majeure. This is a permitted clause in the contract.

Crude output in Libya has roughly halved to 600,000 barrels per day since mid-April, according to foreign media estimates, further tightening global oil markets. This year, global oil prices have surged 45% to around $110 a barrel amid the conflict between Russia and Ukraine.

The Libyan National Oil Corporation's move comes as Libyan authorities grapple with domestic protests. These civil unrest have forced the closure of many oil fields and ports.

Mustafa Sanalla, chairman of the Libyan National Oil Company, said no individual or official should be allowed to use the oil sector as a bargaining chip. Sanalla said:

"The situation is very dire, the Sirte region is closed and some people are trying to demonize the oil sector."

The African oil-producing powerhouse has been mired in conflict since the 2011 ouster of former Libyan leader and dictator Muammar Gaddafi. The current turmoil is precisely due to the battle for the legitimate prime minister between two politicians (Abdul Hamid Debeba and Fati Basaga).

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Libyan National Oil Company: Sirte Gulf oil exports may be suspended for the next three days

2022-06-30

Libya's National Oil Company said Libyan authorities may block exports from Sirte Gulf for the next three days as the political crisis worsens. Es Sider, Ras Lanuf, Brega and Zueitina along the Sirte Gulf are all major ports for oil exports.

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