Libya’s NOC Declares Force Majeure at Al Sharara Field Amid Protests

Libya’s NOC Declares Force Majeure at Al Sharara Field Amid Protests

Libya’s National Oil Corporation (NOC) has declared force majeure at the Al Sharara oil field, the country’s largest, following a complete halt in production caused by ongoing protests. The news, reported by TASS, indicates that the force majeure took effect on January 7 after demonstrators sealed the field and blocked operations. The disruption extends to the full stoppage of crude shipments to Zawiya port, complicating the country’s efforts to manage its oil exports. The NOC is actively negotiating steps to resume production and restore crude flows to the port. (Source: TASS)

Earlier discussions had suggested that Libya might see a significant shift in 2024, including the possibility of an international auction of licenses to explore and develop gas and oil on Libyan soil. This potential move would come as the country seeks to reopen and attract international investment in its energy sector. (Source: Libyan energy authorities)

Prior to the current disruptions, the Libyan Ministry of Oil and Gas announced a restoration plan for the two largest fields, signaling efforts to stabilize output. The suspension was tied to protests, with a notable portion of participants reportedly linked to the Al Azwiya tribe based in Tripoli. (Source: Libyan Ministry of Oil and Gas)

In the broader context of oil markets, analysts have noted how price dynamics can influence policy and production decisions, including moments when oil prices hover around key thresholds such as fifty dollars per barrel. These price levels can impact both national strategy and investor sentiment as Libya navigates its post-conflict energy landscape. (Source: Market analyses)