The National Oil Corporation of Libya has reported significant losses due to the forced closure of a valve on the Sharara pipeline, which connects the Sharara oil field to the Zawiya refinery. The closure, which began on September 21, has resulted in losses exceeding $75 million over four days. The corporation has also reported a cumulative loss of over 720,000 barrels of crude oil.
According to the National Oil Corporation, the daily loss of crude oil from the Sharara field has been substantial since the closure began. On September 21, the loss was approximately 129,085 barrels, increasing to 259,349 barrels on September 22, and 235,983 barrels on September 23. The losses continued on September 24, with 237,937 barrels lost, bringing the total cumulative loss to 720,362 barrels.
The corporation has warned that the continued closure of the pipeline could lead to a shortage of crude oil for the Zawiya refinery, potentially causing it to halt operations. This, in turn, could impact the supply of fuel derivatives in the local market. The refinery's crude oil reserves are dwindling, and if the pipeline remains closed, it may not be able to continue operating.
The National Oil Corporation has emphasized that the losses are not limited to the production of the Sharara field and the direct financial losses but also extend to the refining operations and the supply of oil derivatives in the local market. The corporation has urged for an immediate resolution to the issue to prevent further losses and mitigate the impact on the national economy.
The continued closure of the pipeline is expected to lead to additional financial and technical burdens on the oil sector and the national economy. The corporation has stressed that the numbers recorded so far do not represent a final limit to the losses, and continued closure could lead to a doubling of the losses in the coming period.
The National Oil Corporation has linked the continued closure of the Sharara pipeline to a series of potential consequences that could extend from the producing field to the refining facilities and then to the market for oil derivatives. The corporation has warned that the depletion of the refinery's crude oil reserves could lead to a halt in refining operations, which could impact the supply of oil derivatives and increase financial and technical pressures on the national economy.
In conclusion, the National Oil Corporation has emphasized that the continued forced closure of the pipeline is a direct factor in the escalation of production losses, with the cumulative loss exceeding 720,000 barrels over four days and direct financial losses exceeding $75 million as of September 24.
Key points
- The closure of the Sharara pipeline has resulted in losses exceeding $75 million and a cumulative loss of over 720,000 barrels of crude oil.
- The National Oil Corporation has warned of potential shortages in fuel derivatives due to the closure of the pipeline.
- The continued closure of the pipeline could lead to a halt in refining operations at the Zawiya refinery.
