Libya's NOC says it may declare force majeure after protests hit oil facilities

TRIPOLI, Sept 15 (Reuters) - Operations were suspended at several oilfields after members of the security force charged with protecting Libya's oil sector closed a valve on the main Hamada-Zawiya crude-loading pipeline, the National Oil Corporation said on Tuesday.

The NOC said it may declare force majeure if the valve remains closed or if other fields are subjected to similar forced shutdowns. The company said production had completely halted at the ⁠Hamada, Tahara and NC5 fields.

Libyan oil output has been subject to repeated closures for political and technical reasons since the 2011 uprising against Muammar Gaddafi.

In a statement obtained by Reuters, the Petroleum Facilities Guard, which provides security for Libya's oil fields, pipelines and terminals, demanded that their agency be transferred "financially and administratively under the National Oil Corporation".

They called on the prime ministry and the NOC to take urgent measures to complete the administrative and financial arrangements for ⁠this, and set a clear implementation timeline. The agency currently operates under the defence ministry.

The Guard said it would implement a partial production cut for one week as of Tuesday at several fields including Wafa, Al-Khamsa and El Feel, adding that a ⁠complete shutdown would follow if their demands were not met.

Oil production is Libya's main economic source, representing approximately 90% of the economy of the entire country.

"Shutting down oil ⁠fields and halting production operations at this critical juncture -- as the world witnesses a rise in crude oil prices -- constitutes a devastating blow to ⁠the national economy," the NOC said in a statement.

Reporting by Ahmed Elumami in Tripoli, Ayman Werfali in Benghazi and Menna Alaa El Din in Cairo; Writing by Yasmine Ghania; Editing by Kevin Liffey and Jan Harvey

Our Standards: The Thomson Reuters Trust Principles., opens new tab