Libya loses more than two-thirds of its oil export share daily

Libya’s National Oil Corporation said on Sunday that the country loses around 850,000 barrels of oil on a daily basis and revenues worth $67.4 million as a result of closing oil ports and fields and halting of export operations by the authorities in the East.

Production and export operations were halted in Libya in the oil crescent at the beginning of last week after the Libyan army led by General Khalifa Haftar announced handing over the oil ports and fields to the oil institution affiliated with the interim government in East Libya instead of handing them over to the oil institution affiliated with the Government of National Accord in Tripoli.

Haftar’s decision resulted in a conflict between authorities in East and West Libya after ships were prevented from loading from big oil ports.

In a statement issued on Sunday, the National Oil Corporation warned of resuming this halt on operations to export crude oil from the oil stations that are currently closed by the general command as this may force it to declare force majeure which will have grave consequences on institutions affiliated with it, on the national economy and on the Libyan people on the short and long term.

Libya was producing more than 1 million barrel in the past few months but in mid-June, the attack on the Libyan army forces in the Ra's Lanuf and Sidra ports led to closing both ports thus decreasing production by 450,000 barrels a day.

In addition to the losses in the crude oil sector dedicated to exports, the National Oil Corporation said natural gas used in generating electricity in stations North of Benghazi will witness a decline worth 710 million cubic feet a day. This is in addition to losing more than 20,000 barrels of condensate per day.

To put an end to the deficit in the fuel import budget and stop losses, the National Oil Corporation called on the general command to open the oil stations and allow it to perform its vital and economic role which is internationally recognized considering it’s the only Libyan party that’s responsible for exploring, producing and exporting oil products. It added that not doing so will have serious consequences on the major operational infrastructure of the oil and gas sector and will also impact the state’s public finances.