Tribal leaders in southern Libya shut down the county’s largest oil field, authorities said Monday, the latest closure of an oil facility amid a bitter standoff between two rival governments.
Oil production at the Sharara field has been stopped and the state-run National Oil Corp. declared force majeure at the field, which produces around 450,000 barrels a day. Force majeure is a legal maneuver that enables a company to get out of its contractual obligations because of extraordinary circumstances.
The corporation called the shutdown of the field an "absurd move” that mirrors the ongoing standoff in the country. The closure will likely create a fuel crisis in the oil-rich country, as the field is one of the main sources of domestic fuel.
Along with crude oil production, the NOC said the closures will cause shortages of cooking gas and power supplies to the eastern region, also controlled by Hifter's self-styled Libyan Arab Armed Forces.
Mustafa Sanallah, chairman of the National Oil Corp., said they were forced to stop production at all fields and stations associated with the terminal and shipping facilities until further notice. He urged Libyans to push for the reopening of oil facilities to “benefit from the current boom in prices.”
The shutdown came as Brent crude, the international pricing standard, traded at $106.97 per barrel Monday.
