Libya’s Sharara Pipeline Shutdown Causes $75 Million in Losses, NOC Says

The forced shutdown of Valve No. 7 on the main Sharara-Zawiya crude oil pipeline operated by Akakus Oil Operations has led to significant production losses at Libya’s Sharara oilfield and reduced crude supplies to the Zawiya refinery, the National Oil Corporation (NOC) said.

According to the NOC, daily production losses since the shutdown began on Sept. 21 were:

Monday, Sept. 21: 129,085 barrels

Tuesday, Sept. 22: 259,349 barrels

Wednesday, Sept. 23: 235,983 barrels

Thursday, Sept. 24: 237,937 barrels

The NOC said cumulative crude production losses over the four-day period amounted to 720,362 barrels, while its direct financial losses were expected to exceed $75 million as of Sept. 24.

The NOC warned that the losses could increase if the forced shutdown continues.

The shutdown could also adversely affect operations at the Zawiya refinery, potentially forcing refining units to shut down as crude oil stocks in storage tanks are depleted, the NOC said.

Such a disruption could affect the supply of petroleum products and impose additional financial and technical costs on Libya’s economy, it added.