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Libya’s National Oil Corp. declared force majeure on the oil ports of Es Sider and Ras Lanuf, and is taking measures to halt output at some oil fields because of armed clashes in the politically-divided North African country.
Fighting factions should spare energy infrastructure in Libya, the state-run National Oil Corp. said in a statement yesterday on its website. Force majeure is in place at Es Sider and Ras Lanuf, Libya’s largest and third-largest oil ports with a combined capacity of 560,000 barrels a day. The measure is a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control.
National Oil, known as NOC, didn’t say which oil fields are being halted. NOC is adopting measures to protect wells, pumps and pipelines.
“Force majeure has been declared at the oil ports of Es Sider and Ras Lanuf because of the ongoing armed clashes in the area,” it said. NOC “is determined to protect the oil resources of the country in a way that protects the rights of the country and the partners in line with terms of the partnership agreements.”
Libya, holder of Africa’s largest oil reserves, is divided after its internationally recognized government, led by Abdullah al-Thinni, sought refuge in the country’s east since Islamist militias took over Tripoli about four months ago. Omar al-Hassi set up a rival government in the capital with the backing of the militants. Thinni’s government plans to take control of oil revenue could prompt rivals to disrupt shipments, Eurasia Group analyst Riccardo Fabiani said by e-mail Dec. 12.
Libya is producing about 800,000 barrels a day of crude, NOC spokesman Mohamed Elharari said Dec. 8. Libya had output of about 1.6 million barrels a day of oil before the 2011 rebellion that ended Muammar Qaddafi’s 42-year rule.
To contact the reporter on this story: Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net
To contact the editors responsible for this story: Nayla Razzouk at nrazzouk2@bloomberg.net Claudia Carpenter, Shaji Mathew
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