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Stoppage of oil exports cause daily losses of 67.4 mln USD: Libyan Oil Corporation

Arab World Materials 2 July 2018 01:53 (UTC +04:00)
Libyan National Oil Corporation (NOC) of the UN-backed unity government on Sunday said that the recent stoppage of oil production and exports in oil crescent region by the eastern-based army causes daily losses of 67.4 million U.S. dollars.
Stoppage of oil exports cause daily losses of 67.4 mln USD: Libyan Oil Corporation

Libyan National Oil Corporation (NOC) of the UN-backed unity government on Sunday said that the recent stoppage of oil production and exports in oil crescent region by the eastern-based army causes daily losses of 67.4 million U.S. dollars, Xinxua reported.

"The cessation of crude exports from oil terminals currently blockaded by Libyan National Army (LNA), potentially requiring the declaration of force majeure, will have significant short and long term consequences for NOC affiliate companies, the national economy and the Libyan people," NOC said in a statement.

"Daily revenue losses associated with the shutdown of production of crude oil, condensate and natural gas are estimated at 67.4 million dollars," the statement said.

"NOC calls once again upon the LNA General Command to end the blockade and allow NOC to fulfil its economically vital, internationally recognized role as sole Libyan entity responsible for the exploration, production and export of petroleum products," added the statement.

"Failure to do so will have further dramatic consequences on the oil and gas sector, key operational infrastructure and national finances," the statement said.

The Libyan eastern-based army, led by General Khalifa Haftar, recently took control of the oil crescent region, which is located some 500 km east of the capital Tripoli and contains the country's largest oil ports, after defeating terrorist groups occupying it.

Shortly after that, the army handed over the region to the National Oil Corporation of the eastern-based interim government, instead of the Tripoli-based UN-backed unity government.

Despite signing a UN-sponsored peace agreement by the Libyan political parties in 2015, Libya remains politically divided between eastern and western governments, both competing for legitimacy.

Oil-rich Libya has been plagued by insecurity and chaos since the 2011 uprising that toppled former leader Gaddafi's regime.

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