Libya's National Oil Corporation announces state of force majeure after clashes
Date
12/16/2024 6:22:22 AM
(MENAFN) Libya's state-owned National Oil Corporation (NOC) announced a state of force majeure on Sunday at the Zawiya oil refinery, located approximately 45 kilometers west of Tripoli, following extensive damage caused by armed clashes. The refinery, Libya’s second-largest, sustained significant damage after gunfire hit several storage tanks, leading to severe fires early Sunday morning. The clashes, involving light and medium weapons near the refinery, have heightened concerns about safety and further disruptions to Libya's oil production.
In a statement, the NOC expressed regret over declaring a force majeure and raised the situation to level three, the highest emergency level. Despite the ongoing violence, the refinery's security and safety teams managed to control the fires and address gas leaks, averting a potentially catastrophic escalation. However, the continued fighting in the area remains a significant threat to the refinery and the surrounding communities.
Built in 1974, the Zawiya refinery is a critical component of Libya's oil infrastructure, producing an estimated 120,000 barrels of oil products daily. The disruption caused by the clashes not only jeopardizes oil delivery obligations but also impacts the stability of the region's energy supply. The state of force majeure, invoked by the NOC, allows the company to be exempt from liabilities related to breaches of its oil delivery contracts during such extraordinary circumstances.
The NOC has called on authorities to take immediate action to end the clashes and ensure that oil facilities are protected from conflict. The damage to the refinery's storage tanks, which hold highly flammable materials, poses a severe risk to civilian lives and underscores the urgent need for de-escalation. The corporation emphasized the critical importance of keeping vital oil infrastructure out of harm's way to avoid further economic and humanitarian consequences.
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