NOC chairman says no further production stoppages expected

An oil and gas facility in Ras Lanuf, Libya [Reuters]
An oil and gas facility in Ras Lanuf, Libya [Reuters]

Libya's National Oil Corporation (NOC) Chairman Masoud Suleiman said the country's crude oil production has returned to normal levels, he said Wednesday (local time).

According to Reuters and other outlets, Suleiman said the impact of shutdowns at three oil fields and facilities Wednesday was limited, adding: "The situation is currently normal and I do not expect any further production stoppages."

Earlier Wednesday, the NOC said production and operations at the Hamada (NC8) and Tahara (NC4) oil fields and the NC5 facility had ground to a halt after members of the Petroleum Facilities Guard (PFG) — which protects oil installations — shut valves on a key crude pipeline linking Hamada and Zawiya.

The closure of the pipeline valves caused pressure to surge sharply at the point where the production line connects to the Tahara oil field, forcing the shutdown of the field and related facilities.

The NOC warned it could declare force majeure — signaling its inability to meet contractual obligations — if the valve closures continued or similar forced shutdowns occurred at other fields.

The PFG, which falls under the Ministry of National Defense, took the action to press demands that its organization be transferred — financially and administratively — under the NOC's authority.

Shortly after the NOC announced the shutdowns Wednesday, Suleiman said Libya's overall oil production remained largely unaffected, holding at around 1.4 million barrels per day, and that the NOC was in contact with the PFG.


mokiya@heraldcorp.com