As a result of the stoppage of exports operations by the local Petroleum Facilities Guard (PFG), the National Oil Corporation (NOC) was forced to declare Force Majeure status on Zueitina Port as of Tuesday 3rd November.
In a statement, the NOC said:
"NOC has felt constrained to declare Force Majeure status on this port on the light of cessation of most of crude oil production fields, which means more decrease of production rates, and consequently decrease of the exports of crude oil and its products, which present the main source of public revenues of the foreign currency.
"It is well-known for all that the stoppage of exporting operations in Zueitina port on the light of the continuation of Force Majeure Status on Sidra and Ras Lanuf Ports; as a result of another interruption by Oil Installations Guards as well, the continuous closure of the loading line valve of Sharara Crude and the loading line valve of Alfeel Crude, will push Libya’s economic and financial situation into a status of deterioration and Chaos.
"The results of such situation is evident in the depreciation of the Libyan Dinar against other foreign currencies and its direct impacts on the citizen’s standard of living. All this come along with delay in paying of salaries for the same reasons on one hand, and the negative effects of such stoppage on the provision of fuels despite the serious attempts of NOC and Brega Oil Marketing Company to maintain the stability and regularity of flowing of fuels as per the required needs of the local market, on the other hand.
"All this occurs despite NOC’s continuous assertion on its neutrality and professionalism entitled by Law and keeping Oil and Gas Sector away from all the political and regional conflicts, in addition to its full commitment to provide and distribute fuels to all parts of Libya without any differentiating between a city and another.
"In this respect, NOC calls upon all the parties involved in the Libyan crises to assume their responsibilities towards such irresponsible practices, urges them to discard their differences, to direct the country towards stability, to work on the regularity of the process of production and services units in Oil and Gas Sector as well as other sectors, and to avoid the collapse of the country’s economic position.
"NOC also holds the Oil Installations Guards of the Middle and Eastern region responsible for their impeding of the process of production and exports operations as their existence in the fields and ports locations has become a source of blackmailing for personal purposes. Meanwhile, NOC do highly appreciates the efforts by the Honorable Oil Installations Guards who sacrificed their pure blood and souls and those who are still sacrificing their precious belongings in order to give full support to the process of the operations and the continuation of the production flow.
"Finally, NOC is committed to all its contracts with its clients and partners to implement the schedules shipments of Oil Crude and its derivatives from Zueitina Port. NOC also asserts the tackling of the positions arising thereof pursuant to the applicable laws and regulations in a way that preserves the rights of each Party."
(Source: National Oil Corporation)
(Force majeure image via Shutterstock)