Libya’s National Oil Corporation Declares State of Force Majeure at Zawiya Refinery
Libya’s state-owned National Oil Corporation (NOC) has declared a state of force majeure at an oil refinery in the western city of Zawiya, located 45 kilometers west of the capital Tripoli, due to damages caused by armed clashes.
Damage Caused by Armed Clashes
The NOC regretfully declared a force majeure and level three (the highest) emergency, citing that several Zawiya refinery storage tanks sustained significant damage from gunfire on early Sunday morning, leading to serious fires. The damage is a direct consequence of armed clashes using light and medium weapons in the refinery’s vicinity.
Refinery’s Security and Safety Measures
Despite the continuing clashes around the refinery, the refinery’s security and safety personnel managed to control the fires and gas leaks, according to the statement.
Impact on Oil Production
The Zawiya refinery, Libya’s second-largest one built in 1974, produces an estimated 120,000 barrels of oil products daily.
State of Force Majeure
The state of force majeure, invoked in exceptional circumstances, allows the NOC exemption from liability for a breach of oil delivery contracts. The NOC called on the relevant authorities to urgently stop the clashes and keep oil facilities out of the conflict zone, saying that damage to the refinery’s storage tanks, which contain highly flammable materials, poses a grave danger to civilian lives.
Libya’s Oil Industry
Libya’s oil industry, the backbone of its economy, has frequently been caught in the crossfire of political disputes and armed conflict since the fall of late leader Muammar Gaddafi in 2011.
Conclusion
The declaration of force majeure at the Zawiya refinery highlights the ongoing challenges faced by Libya’s oil industry, which is crucial to the country’s economy. The NOC’s call for an immediate stop to the clashes and the protection of oil facilities is a pressing concern for the safety of civilians and the stability of the region.
FAQs
Q: What is a state of force majeure?
A: A state of force majeure is a situation where a party is excused from performing its obligations due to circumstances beyond its control.
Q: What is the impact of the state of force majeure on oil production?
A: The state of force majeure allows the NOC exemption from liability for a breach of oil delivery contracts, which may affect the supply of oil products.
Q: What is the significance of the Zawiya refinery?
A: The Zawiya refinery is Libya’s second-largest oil refinery, producing an estimated 120,000 barrels of oil products daily, making it a crucial part of the country’s oil industry.