London — Libyan oil production was down 850,000 b/d as National Oil Corp. declaredforce majeure Monday on crude oil loadings from the Zueitina and Marsael-Hariga terminals, due to the ongoing blockade of the eastern oil ports.
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NOC confirmed in a statement total daily production losses amount to 850,000b/d of crude, along with 710 MMcf/d of gas, and more than 20,000 b/d ofcondensate, as a result of the port closure.
The OPEC member was producing 950,000 b/d in May before the latest clashes ineastern Libya began to disrupt output, according to S&P Global Plattsestimates.
NOC issued the declaration at 11:00 am local time (0900 GMT) Monday. This isin addition to the force majeure already in place at the Ras Lanuf and EsSider oil terminals on June 14, after the ports were taken over by a renegademilitia. Both were recaptured by the self-styled Libyan National Army on June22.
However, control of the ports, along with all the eastern ports, was handedover to a rival oil company, known as NOC East. It has prevented any shipsfrom loading crude.
"Despite warning from NOC of the consequences of ongoing blockades, the LNAGeneral Command has declined to rescind its order that no vessel be allowed toport to receive allocated shipments," NOC said.
"Two legitimate allocations were blocked from loading at Marsa el-Hariga andZuetina this weekend. The storage tanks are full and production will now gooffline," NOC chairman Mustafa Sanalla added.
NOC estimates Libya has already lost $650 million since the takeover of theRas Lanuf and Es Sider ports, and now faces another $67.4 million each dayfrom the latest closures.
--Adal Mirza, firstname.lastname@example.org
--Edited by Maurice Geller, email@example.com