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Libya: Petroleum Facilities Guard shuts down two oil fields over delays in security payments

Wednesday, 31 August 2016 10:03

(Ecofin Agency) - The Petroleum Facilities Guard (PFG) has halted oil production from the Gulf fields and Al-Wafa field due to non-payment of security fees of the oilfields by the Libyan unity Government (GNA).

According to a brigade commander, Mohammad Ahmad Alkhbasha, the PFG in the south shut down the two oilfields, which produce 30,000 barrels per day of light oil condensate.

There are about six oilfields under our guards’ control and we have stopped the pumping of crude oil from Gulf and Alwafa oilfields. But gas will be continued from Al Wafa normally,” Alkhbasha said

The PFG in the south controls the Al Wafa, Gulf, Al-Khamsa, El-feel, El-Sharara, and Senawang oilfields, as well as wells and pipelines. The El-Feel and El-Sharara oilfields have alredy been shut down before this incident.

NOC chairman, Mustafa Sanalla, on Monday said that the delays in budget by GNA have reduced oil production by 200,000 barrels a day which is worth millions of dollars.

Libya's oil production is below 300,000 barrels per day from the 1.6 million bpd it produces before the fall of Gaddafi. Oilfields and ports have fallen under the control of rival armed factions loyal to two competing governments that emerged in 2014.

The GNA has been working since it assumed office in March to restart oil production that was shut in following the 2011 uprising and in July the PFG signed an agreement with the Libyan unity Government to reopen two of Libya’s main oil ports that could result in an increase of 150,000 barrels a day.

However, the ports are yet to be reopened, Reuters reports.

Anita Fatunji

 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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