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

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.


UAE in seeks to boost its high-tech military industry

Updated 58 min 32 sec ago

UAE in seeks to boost its high-tech military industry

  • The UAE is reshaping a military industry already seen as the region’s most sophisticated
  • The UAE’s defence industry dates back two decades

DUBAI: The United Arab Emirates is making a push to develop high-tech military hardware that would give it control over critical defence capabilities and lessen reliance on imports.

Wary of threats from rival Iran, and concerned over moves by some allies to hold up arms sales, the UAE is reshaping a military industry already seen as the region’s most sophisticated.

State defence companies have been brought together to form EDGE, a $5-billion conglomerate to spearhead development of advanced weapons for the country’s military.

Those ambitions were put on display at this week’s Dubai Airshow where the military handed an EDGE company a $1 billion contract for guided missiles.

“Like many countries, on specific critical capabilities you want to have sovereignty,” EDGE Chief Executive Faisal al-Bannai told Reuters.

The UAE’s defence industry dates back two decades, built through joint ventures and technology transfer programmes.

Much of it now sits under EDGE, manufacturing drones, small ammunitions and providing maintenance.

Abdulla al-Hashimi, assistant undersecretary for support services at the UAE Ministry of Defence, said sovereign capabilities were a “necessity” for security and the economy.