Forces loyal to Muammar Qaddafi attacked the front gate of Libya’s largest oil refinery near the coastal town of Ras Lanuf on Monday, killing 15 guards, witnesses said.
The attack shocked Libya’s interim leaders, who now control nearly all the country’s oil industry, including coastal export terminals. Many oilfields lie deep in the desert in an area known as the Sirte Basin and are seen as vulnerable to attack.
NOC chairman Nouri Berouin told Reuters the authorities were improving protection of infrastructure across the country.
“It’s an isolated incident. I don’t think it will be repeated. We are preparing to give more protection to installations, especially after we finish in Sirte and Sabha,” Berouin said in an interview late on Wednesday.
Neither the city of Sirte nor Sabha are yet under the control of Libya’s interim leaders.
Qaddafi has frequently threatened to attack oil facilities, which cash-strapped interim leaders hope will give them an economic lifeline in the coming months.
NOC has said it will begin exporting crude oil from the eastern port of Tobruk within 10 days and could be producing 1 million barrels a day (bpd) within six months.
A spokesman for the ruling National Transitional Council (NTC) said the road stretching about 200 km (125 miles) from the contested city of Sirte to the Mediterranean export terminals of Es Sider, Brega and Ras Lanuf was now being guarded.
“The national army has secured the road to Ras Lanuf, which Qaddafi troops attacked,” Abdel Hafiz Ghoga, NTC vice chairman and official spokesman, told Reuters.
NOC subsidiary the Arabian Gulf Oil Company has said it has a “small army” protecting its eastern fields, including Sarir which began pumping earlier this week.
Libya’s interim leaders are working hard to bring the oil and gas industry back to life and begin exporting quickly.
Berouin said gas production had begun in fields operated by Sirte Oil in the desert south of Brega, an area which includes the Hateiba fields.
A pipeline connecting Libya with Italy, which would allow Libyan gas to be exported, is not expected to resume operations before the second half of October.
“We have started gas production from Sirte Oil. This will help bring electricity to Libya and help keep our diesel bill down,” he said.
Fuel imports have been one of biggest items of expenditure for Libya’s interim leaders and the country has been forced to run power plants on oil because of shutdowns in gas fields.
Even in peacetime, the OPEC member relied on imports of fuel because of insufficient refining capacity.
Berouin said the NOC was working closely with Italian oil firm Eni to restart offshore gas production. He said they had arranged for a “floating hotel” to provide temporary accommodation for staff.
Under Qaddafi, the NOC acted as an umbrella organization for the smaller oil subsidiaries, managing commercial operations and representing Libya at international oil meetings such as the Organization of the Petroleum Exporting Countries.
Berouin said the NOC should be reformed with some responsibilities given to the oil and finance ministry, currently headed by Ali Tarhouni.
“The NOC needs a tune-up. Its function must not be ignored but we also need a ministry of oil to handle international affairs,” he said.
Another priority for the NOC in post-Qaddafi Libya will be clawing back oil payments it has said were blocked after international sanctions came in.
“The NOC is owed billions by those lifting crude because sanctions stopped the money,” Berouin said.
