The Attaqa website has reported that closing the Sharara oil field will result in several repercussions, the first of which would be the loss of the Libyan oil sector approximately a third of its daily production.
The website quoted the director of the Energy Research Unit, Ahmed Shawqi, as saying that declaring force majeure would inflict great financial losses on the Libyan economy, especially since oil represents approximately 90% of the state’s total revenues.
The director added that the disturbances and field closures lead to a lack of confidence in the continued export of Libyan oil, which causes a decline in demand for Libyan oil on the part of importers, as they will not have confidence in the continuity of importing oil from Libya.
According to the energy-specialized website, the second issue relates to the fact that oil production in the Sharara field will lead to a local fuel crisis. Its closure means stopping the work of the Zawiya refinery, which has a production capacity of 120,000 barrels per day, which means stopping supplies to the refinery and affecting the availability of fuel for the Ubari power station.
The site pointed out a third recurring effect, which is that closing any field – in general – and reopening it again means the need for maintenance operations and treatment of technical problems and specialized equipment in oil production, which leads to the state treasury bearing additional costs that deepen the economic challenges..