Libya’s NOC chief says instability could lead to 95% oil production loss

The Zella field belongs to Zueitina Oil Company, which pumped 19,000 barrels per day on average in the last quarter of 2018 across all its fields. (File/AFP)
Updated 20 May 2019
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Libya’s NOC chief says instability could lead to 95% oil production loss

  • Sanalla also said an attack happened near Zella oilfield earlier on Saturday
  • Daesh claimed responsibility for the attack through its Aamaq news agency

JEDDAH: Libya's National Oil Corporation (NOC) chief said on Saturday continued instability in Libya could make it lose 95% of its oil production.

"Unfortunately if the situation will continue like this I’m afraid that maybe 95% of production will be lost," Mustafa Sanalla told reporters in Jeddah ahead of a ministerial panel gathering on Sunday of top OPEC and non-OPEC producers.

Sanalla also said an attack had happened near Zella oilfield earlier on Saturday.

Two guards were killed and four others were kidnapped early on Saturday in a suspected Daesh attack targeting the oilfield, a security source said.

The attackers struck at an entrance gate to the field, which lies near the town of Zella about 760 km (470 miles) southwest of the capital, Tripoli. They killed the two guards before fleeing, the source and local residents asking not to be named told Reuters.

Daesh claimed responsibility for the attack through its Aamaq news agency later on Saturday.

The Zella field belongs to Zueitina Oil Company, which pumped 19,000 barrels per day on average in the last quarter of 2018 across all its fields.

An engineer told Reuters workers at the field were safe and facilities had not been damaged.

Daesh has been active in Libya in the turmoil since the overthrow of Muammar Gaddafi in 2011. The militant group took control of the coastal city of Sirte in 2015 but lost it late in 2016 to local forces backed by US air strikes.

In the last two years, the group has targeted three state institutions in Tripoli, home of the Tripoli-based government of national accord led by Prime Minister Fayez Serraj.

Saturday's assault took place as general Khalifa Haftar's Libyan National Army (LNA), which is allied to a rival administration in eastern Libya, mounts an offensive to control Tripoli.


Rocket hits site of foreign oil firms in Iraq’s Basra

Updated 15 min 10 sec ago
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Rocket hits site of foreign oil firms in Iraq’s Basra

  • The rocket hit Burjeisa residential and operations headquarters west of Basra
  • Police said the rocket was a short-range Katyusha missile

BASRA: A rocket landed at the headquarters for several global major oil companies, including US giant ExxonMobil, near Iraq’s southern city of Basra early on Wednesday, wounding two Iraqi workers, police said.

The rocket hit the Burjesia residential and operations headquarters west of the city, they said. There was no immediate claim of responsibility for the attack.

A security source said Exxon was preparing to evacuate some 20 foreign staff immediately.

Other companies operating at the site include Royal Dutch Shell PLC and Italian Eni SpA, oil officials said.

Police said the rocket was a short-range Katyusha missile that landed 100 meters from the section of the site used as a residence and operations center by Exxon.

Burjesia is near the Zubair oilfield operated by Eni.

Exxon evacuated staff last month after the United States cited unspecified threats from Iran for a decision to take hundreds of diplomatic staff out of Iraq.

Exxon had begun returning staff to Iraq, however, before Wednesday’s incident.

(developing)