Libya faces oil cutbacks due to protests at key field

11 October 2018
Production has risen but risks remain high, says National Oil Corporation chairman

Libya’s oil production has risen as high as 1.3 million barrels a day (b/d), but its output remains at risk from both external and internal actors, the chairman of state-owned National Oil Corporation (NOC) has warned.

Mustafa Sanalla told delegates at an energy conference in London that Libya’s civil war is driven by outside actors pursuing different agendas. His comments come weeks after NOC’s headquarters in Tripoli were attacked by gunmen, forcing him to flee.

Sanalla contrasted NOC's recent production success with efforts to disrupt the sector.

“NOC is under continuous attack," he told delegates. "Every day, we defend ourselves against criminal, military, political and commercial acts of aggression. Without conflict and the near-permanent state of attack, we would be aiming at more than double current production levels.”

He did not shed any more light on who the alleged external actors were, however.

The latest threat to Libyan output came earlier this month at the key Sharara oil field, located in the remote southwestern Murzuq basin. Producing up to 300,000 b/d, the field is the biggest in Libya.

Sources in Libya told MEED that expatriate workers from the operator, Akakus Oil Operations, were evacuated from the field due to security threats from protesters earlier this month. Two Akakus employees were abducted from the field in July and have not been found.

Akakus is a joint venture of NOC and a consortium of Total, Repsol, Statoil and OMV. Its production has already been brought down from 300,000 b/d to about 250,000 b/d.

“The previous threat led to a rapid decline in production and force majeure declared on Sharara's exports,” the source said.

Protesters gathered at Sharara’s camp demanding the Libyan government and central bank improve their living conditions, and threatened to disrupt operations at the field, along with others in southwestern Libya.

While the threats were not made directly against NOC, the state oil company has naturally become a target for the protesters. Their demands include completing work at the Ubari power plant to alleviate severe power outages in the region, and guaranteeing fuel and food subsidies, by 25 October.

NOC did not respond to a request for a comment.

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