NOC Publishes Impact of Oil Blockades At Its Fields
On 1 July, the NOC published a detailed statement listing the specific impacts expected to hit each of its subsidiary companies and production from fields following the declaration of force majuere at Zueitina and Hariga ports. In addition to the 850,000bpd loss of crude exports, the NOC said output of natural gas used for local power supplies and oil and gas field operations would fall by 710 million standard cubic feet per day, and that more than 20,000 bpd of condensate would be lost. The NOC said this would negatively impact power generation at the Zueitina and North Benghazi power stations as the NOC is already facing a deficit in the fuel import budget and will not be able to compensate the lost gas by importing more liquid fuel from abroad. The statement added that once stored crude was used, refineries at Brega, Sarir and Tobruk would be forced to close. Brega port is expected to be shut under force majeure soon and at present it is unclear why the NOC did not include it in the announcement.
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