Libya Shuts Down Largest Oilfield After Rebel Attacks

Oil Pro ^ | 9/17/2014 | Abisha Rabiyah

[thackney]

Production has been halted at Libya's largest oilfield- the Sharara field- after a rocket attack at the connected Zawiya refinery, threatening nearly 30% of the country's production, Bloomberg reported Wednesday.

A rocket exploded near a crude storage tank at the Zawiya refinery. The field was completely shutdown last evening following the discovery of damage to a 300,000 barrel crude storage tank at the facility, Mansur Abdallah, director of oil movement at the Zawiya refinery, told Bloomberg by phone.

Prior to the disruption, the Sharara field produced approximately 250,000 bpd. Production was shut down as a precautionary measure after an attack on the refinery two days ago, Abdallah said.

Abdallah said that the plant will reopen, followed by Sharara, once safety checks have been completed.

Libya was still restoring output after over a year of political turmoil, and as of September 14 the country was producing 870,000 bpd, National Oil Corp spokesman Mohamed Elharari said on that day.

Andrey Kryuchenkov, an analyst at VTB Capital in London, told Bloomberg via email that the disruption "serves as a reminder that despite recovering export rates and the National Oil Corp's reassurances of stable supplies, the country remains in a state of civil war, where anything can happen."

Following the lifting of a one year blockade of Libya's eastern oil ports in July by rebels, Libya's output has recovered. However, Islamist militias have broadened their influence after seizing Tripoli last month and the country's government has had to relocate to the eastern city of al-Bayda, Bloomberg reports.

Sharara is located 450 miles south of Zawiya and the two locations are linked by a pipeline, Abdallah told Bloomberg.

[colorado tanker]

My guess is eventually Egypt will have to occupy key locations in Libya.

[what's up]

My, my. Will Madame Hillary run her wonderful accomplishment of “freeing” Libya?

[Zuben Elgenubi]

Gas in SW Ohio has been hovering around $3.25/gal for the past few days so I was expecting a disruption to drive the prices up.

[rfreedom4u]

I guess this means there are less revenues flowing into Libya then.

[Wuli]

another success story from Obama and McPain

[cliff630]

Yes, thank Odumba for bombing Libya daily, for 4 months. The christians were safe while he was in power. Now the
muzzies are able get the oil AND all the weapons.

[Forward the Light Brigade]

Egypt should own Libya—and use her oil fields. It would help stabilize that part of the world—Maybe they could take Sudan as well. Fighting the Israelis has given Egypt a decent army—The Terrorist rable would have no chance against them.