Libya warns of refinery closure over security

15 October 2018
The warning follows a number of criminal attacks on the refinery

Libya’s National Oil Corporation (NOC) warned on 14 October that it may be forced to close its key Zawiya refinery because of the complex's lack of security.

NOC’s board of directors warned the Petroleum Facilities Guards (PFG), which are responsible for securing Libya’s key oil infrastructure, that failure to ensure the safety of their staff would result in operations being suspended.

This follows a number of criminal attacks on the refinery “in spite of the presence of the PFG and so-called Al-Isnad Brigade”, NOC said in a statement.

On 2 October, the refinery was attacked and one employee was briefly kidnapped. On 10 October, gunmen attacked the refinery again in “an attempt to break open the the oil mixing facility for personal gain - stealing a company vehicle in the process,” NOC added.

The PFG were formed after Libya’s 2011 revolution to protect the country’s vital oil assets. However, NOC has only limited control over the militia and its various brigades often act independently. NOC chairman Mustafa Sanalla even acknowledged last year that the PFG had "devolved into local fiefs".

Ibrahim Jadhran, a former PFG commander is a prime example of this. His forces took control of Libya’s eastern oil ports in June. The battle for the ports, which are responsible for around two-thirds of Libya’s export capacity brought oil production crashing down and caused considerable damage. Elements of the militia are also accused of working hand in hand with Libyan fuel smugglers, but lacking any real alternative NOC has little choice but to rely on them.

The 120,000 barrels a day (b/d) Zawiya refinery in western Libya, is one of the country’s most important refining complexes. Not only does it supply fuel for more of the western region, including Tripoli, it is also a key outlet for crude from the Sharara oil field, Libya’s largest field.

Located in the southwestern Murzuq basin, the 340,000 b/d field is operated by Akakus Oil Operations, a joint venture of NOC, and a consortium of Spain’s Repsol, France’s Total and OMV of Austria.

The 340,000 b/d field has seen several closures over the past few years due to worker protests and attacks by tribal militias on export pipelines. Crude from El-Feel and Sharara is pumped into the 120,000 b/d Zawiya refinery and export terminal.

Libyan oil production is currently at its highest level in years at more than 1.2 million b/d. Closing the refinery would mean slashing production rates at the field, landing yet another blow to Libya’s export revenues, and threatening more disruption to domestic fuel supplies.

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