Libya’s National Oil Corporation (NOC) announced plans to declare force majeure after significant damage occurred to the Zawiya Refinery’s reservoirs, caused by ongoing confrontations between armed groups in the area. The refinery, located in the western part of Libya, is a critical facility for the country’s oil production, as it processes crude oil from the Sharara field, one of the nation’s largest and most valuable oil reserves.
The Zawiya Refinery plays a vital role in meeting Libya’s domestic fuel needs by producing essential products such as diesel, gasoline, jet fuel, and liquefied petroleum gas (LPG). Its operational capacity allows it to process over 100,000 barrels of crude oil daily, making it one of the central pillars of Libya’s energy sector and economy.
In addition to supporting the country’s energy needs, the refinery contributes significantly to the operation of Libya’s power stations and industries. Its output is crucial for maintaining the fuel supply that powers homes, businesses, and critical infrastructure across the country. When the refinery is not functioning properly, Libya faces substantial financial repercussions, as it must resort to importing fuel from abroad to meet its domestic demands.
The ongoing clashes near the refinery have disrupted operations, and the NOC’s decision to declare force majeure indicates the severity of the situation. Force majeure is a legal declaration that frees the company from its contractual obligations due to unforeseen and uncontrollable circumstances, such as the armed conflicts impacting the refinery.
These disruptions come at a time when Libya is already grappling with instability and political divisions following years of conflict. The damage to the Zawiya Refinery is expected to exacerbate the country’s fuel shortage issues, adding further strain to its economy and energy infrastructure. With clashes between armed groups continuing, the NOC has expressed concerns about the long-term impact of such interruptions on Libya’s oil industry, which is the lifeblood of its economy. The corporation is calling for a resolution to the security situation to prevent further damage and ensure the continued supply of fuel for the nation.
