The Libyan National Oil Corporation announced on Monday a state of force majeure at the El Feel oil field due to circumstances beyond its control. The corporation stated in a press release, “Due to the current circumstances affecting crude oil production at the Mellitah field, which have prevented the National Oil Corporation from carrying out crude oil loading operations, some of these conditions will affect the crude oil production operations at the El Feel oil field and cause them to halt.”
The statement added, “Based on the provisions of force majeure in the Libyan civil law, the National Oil Corporation considers these conditions to be beyond its control and unavoidable, necessitating the declaration of force majeure at the El Feel oil field effective from September 2, 2024.” The corporation also noted that the force majeure condition would not apply to other hydrocarbon loading operations, and it would notify the return to normal conditions as soon as the circumstances causing the force majeure are resolved.
The crisis in Libya’s oil fields is deeply intertwined with the country’s political instability and division between rival governments. Since the overthrow of Muammar Gaddafi in 2011, Libya has been split between the Eastern and Western governments, each controlling different territories and resources, including the lucrative oil fields.
The current crisis has been exacerbated by a dispute over the leadership of the Central Bank of Libya, which controls the revenue from oil sales. This dispute has led to the shutdown of major oil fields like El-Feel, as factions vie for control over financial resources. The shutdown was initiated by the Eastern authorities as a reaction to the Western government’s decision to replace the Central Bank Governor, Sadiq Al-Kabir. This move has significantly disrupted oil production, which is a major economic lifeline for the country.
The United Nations has expressed concerns over the economic ramifications of the shutdown and has urged for the immediate restart of oil production. The situation is further complicated by international involvement, with various foreign powers backing different factions within Libya, reflecting the broader geopolitical stakes in the region.
