Libya declares force majeure on exports from Marsa el-Hariga terminal

Oil

Libya’s National Oil Corporation (NOC) has declared force majeure on exports from the Marsa el-Hariga terminal, after the NOC subsidiary Arabian Gulf Oil Co (AGOCO) was forced to reduce crude oil production following a budget dispute with the Central Bank of Libya, Argus reports. AGOCO operates the larger Mesla and Sarir oil fields, as well as the smaller Hamada, Nafoora, al-Bayda and Majid, however due to lack of funding it has been ‘unable to fulfill its financial and technical obligations’, which could result in a 280K b/d decline in the NOC’s combined production. The port was due to load around 180K b/d during April across six oil tankers according to Reuters, with additional uncertainty arising due to the possibility that force majeure may also need to be extended to other facilities unless the dispute is resolved.