Libyan oil blockade cost the country more than $ 5 billion

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Libya’s crude oil exports have fallen 92% and the National Oil Corporation has lost some $ 5 billion since the oil blockade started earlier this year, Libyan public energy company said in a statement. by local media and Reuters.

A group of paramilitary formations affiliated with General Khalifa Haftar’s Libyan national army occupied Libya’s oil export terminals in January, as well as pipelines and fields. The blockade came as fighting continued between the ANL, which is loyal to the government of eastern Libya, and forces loyal to the government of national accord, which is recognized by the United Nations.

Shortly after the blockade, the NOC declared a force majeure on oil exports, with company president Mustafa Sanalla warning that the blockade could end up costing Libya $ 55 million a day. At the time, production losses were estimated between 500,000 b / d and 800,000 b / d. At the end of January, Libyan production was around 300,000 bpd, but Sanalla said it could drop to 72,000 bpd. In early April, production was less than 100,000 bpd. This is down from more than 1.2 million bpd before the blockade.

Meanwhile, the production of fuel and other petroleum products fell to zero because the refineries had to be closed due to the blockade as well.

“The first quarter of 2020 was a huge drop in income for Libya, a direct result of the illegal blockade of many oil and gas installations. This is only part of the picture, because the corrosion of pipes caused by oil and salt water causes physical damage that will cost millions of dollars to repair after the crisis is over, “said Sanalla.

“Libyans across the country are the ones who will feel the cost of this illegal blockade. Low incomes will only further delay any government investment in public services, the national economy and the foundations of Libya’s future prosperity, “he added.

By Irina Slav for Oilprice.com

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