Arab News | Protesting guards shut down major Libya oil refinery

TRIPOLI: Libya’s National Oil Corporation said Tuesday protesting guards had closed the gates of a major oil refinery, one day after an armed group shut a valve at another oilfield.

The Zawiya oil refinery — the country’s second-largest — remained shut while access to the Brega Petroleum Marketing Company, which runs the refinery, was partially granted, the NOC said.

The NOC said the guards carried out the shutdown in protest, but it remained unclear what their demands were.

“This action prevented employees and technicians from entering (and) blocked the handover of night shifts responsible for operational activities,” the NOC said.

The NOC said the shutdown could lead to “a complete paralysis of operations at the complex,” affecting fuel supplies and public revenues.

Armed groups and protesters frequently target oil fields, pipelines and export terminals to press political or economic demands.

The NOC said the latest incident followed the shutdown of a valve that threatened production from the Al-Sharara field, a key source of crude for Libya.

The NOC said disruption at the Al-Sharara field has caused the losses of about 130,000 barrels per days.

Libya is an OPEC member that holds Africa’s largest proven oil reserves.

The company had said if the shutdown continues, it could be “compelled to declare force majeure,” a legal provision that allows suppliers to suspend contractual obligations because of circumstances beyond their control.

“The closure caused a pressure buildup within the crude oil pipeline, leading to a significant reduction in production at the Sharara field,” the NOC said on Monday.

Such a scenario would directly reduce state revenues at a time when global oil prices are rising, it added.

Despite its vast energy wealth, Libya has been beset by violence and instability since the overthrow of Muammar Qaddafi in 2011.

It remains divided between the UN-recognized government in the capital Tripoli led by Prime Minister Abdulhamid Dbeibah, and the rival administration in the east backed by military strongman Khalifa Haftar.