The Chairman of the Libyan National Oil Corporation (NOC) Mustafa Sanalla said the reserves of fuel and gas would soon finish at the depots, ringing a deafening alarm for the conflict-ridden country.
In a video statement, Sanalla said the money allocated to the NOC to import fuel products is always not sufficient due to the repeated stoppages of the local oil refineries.
He also reiterated the need for committing to the law so the oil operations can be resumed and the conflict can be resolved, saying the oil facilities must be reopened without preconditions as the blockade is a crime.
“The oil and gas sector is the lifeblood of the Libyan economy and the single source of income for the Libyan people. The oil and the oil facilities belong to the Libyan people. They are not cards to be played to solve political matters,” said Sanalla in a separate statement. He added that shutting down oil exports and production will have far-reaching and predictable consequences.
“If the shutdown is prolonged, we face collapse of the exchange rate, a huge and unsustainable increase in the national deficit, the departure of foreign contractors, and the loss of future production which may take years to restore. The main beneficiaries of this act will be other oil-producing states, and the harm will be entirely to Libyans. This is like setting fire to your own house.” Sanalla explained.
He reiterated if the oilfields are shut, the production loss will be immediate, adding that the NOC has limited available storage at our main ports and if they are closed, the NOC will need to reduce production immediately, and to shut down entirely when available storage is filled.
“That could be in as little as five days.” The Chairman of the NOC explained, adding that blockading oil facilities is a criminal act.