Libyan national oil firm says losses from oilfield closure worth $562 million

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The National Oil Corporation (NOC) in Libya, announced on Thursday that the cumulative loss in production since the closure of oil assets by General Khalifa Haftar’s forces now equaled $562 million, according to a statement posted on the company’s official Facebook page.

The company’s cumulative production loss was 8.6 million barrels of oil as of January 29, 2020, the statement added. NOC’s daily production was 288,181 barrels per day (bdp), down from an average daily production of 1.22 million bpd before the oil field’s blockade on January 19, 2020.

The company’s daily financial losses are $60.03 million, the statement showed.

Following General Haftar’s blockade, the NOC declared force majeure, which allows Libya to legally suspend delivery of contracts. Libya is home to Africa’s largest proven oil reserves.

The statement noted that the cumulative loss in production equaled 3.91 million barrels, and $256.65 million, over the course of less than a week.

General Haftar shut down the oil field in the lead up to an international conference in Berlin that aimed to bring together Haftar, who leads the Libyan National Army, with the rival UN-recognized Government of National Accord (GNA). The GNA is backed by Turkey and has links to extremist militias.

The closure denies a key source of revenue to the GNA under Prime Minister Fayes al-Sarraj. Funds from oil production have previously been used by the GNA to buy weapons.

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