Libya’s NOC announces force majeure on El Feel oilfield

Libya’s state-owned oil company National Oil Corporation (NOC) declared force majeure on the El Feel oilfield, one of the biggest oil production sites in the country.

PHOTO: Libya's national flag. Getty Images

Brent’s price found some support as supply concerns escalated following the NOC’s declaration of force majeure on the El Feel oilfield, signalling the company will be unable to continue operations as planned due to the current political circumstances.

The El Feel oilfield is operated by Mellitah Oil and Gas, a joint venture between NOC and Italian oil giant Eni. It has a crude oil production capacity of about 70,000 b/d, according to a Reuters report.

The prevailing situation with oil production and export in the country is “out of its control and cannot be prevented,” the NOC said in a statement.

The OPEC producer is facing political turmoil due to the ongoing dispute over the control of its central bank, the only globally acknowledged depository of its oil revenues.

Last week, the Benghazi-based government, which opposes the internationally recognized administration in Tripoli, announced plans to halt all crude oil production sites.

The global oil market has “paid heed to a continuing halt in Libyan crude exports,” VANDA Insights’ founder and analyst Vandana Hari remarked, adding that this news has supported Brent’s price.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online