Libya Faces Problems, Stopped some Oil & Gas Operations

Source: www.gulfoilandgas.com 11/11/2014, Location: Africa

The growing unrest in Libya led to the shutdown of important oil fields in libya: El Sharara and El Feel fields.

On November 5th, Gunmen seized Libya's major El Sharara oilfield, looting equipment and shooting as frightened workers sought shelter, oil sources said, in another blow to the country's oil industry which has been subjected to protests and militia blockades.

It was unclear exactly what happened at the field, which at maximum capacity produces about 340,000 barrels per day. It is Libya's biggest operational field, located in the remote south where rival tribes have clashed since Muammar Gaddafi was ousted three years ago.

The closure is a blow to government efforts to keep oil production isolated from the spreading chaos in the North African country, where two prime ministers, parliaments and army chiefs of staff compete for control. The closure will lower the OPEC member's oil production, last reported at around 800,000 bpd, by at least 200,000 bpd.

The field was producing at least 200,000 barrels per day before the shutdown, the sources said. It had been running below capacity as some wells had been lost due to previous closures by local people in the past 12 months.

The closure will have an impact on the 120,000 bpd-Zawiya refinery, which is fed by El Sharara and supplies the capital with fuel products.

On November 9th, the El Feel field, operated by Libya's National Oil Corporation (NOC) and Italy's ENI, shutdown due to a power outage after armed men forced the closure of the major El Sharara field in south Libya, an NOC spokesman said.

OPEC member Libya is in turmoil as two governments and parliaments vie for legitimacy three years after the ouster of strongman Muammar Gaddafi. The internationally-recognised government works from Tobruk in the east since an armed group seized the capital Tripoli in August.

Libya hopes both closed fields, which share one electrical power source, will resume work by Monday, said an NOC spokesman, which would gradually bring back up to 300,000 barrels a day.

"We expect El Feel and El Sharara to return to work on Sunday or Monday," Harari said.

For more information about related Opportunities and Key Players visit Libya Oil and Gas Projects


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