×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Libya | Oil

Libya Says Oil Shutdown Losses Exceed $3.5 Billion

Libya Says Oil Shutdown Losses Exceed $3.5 Billion

Tuesday, 24 March 2020 05:38 AM EDT

CAIRO (AP) — Libya's oil company says economic fallout from a protracted blockade of its vital oil facilities has resulted in losses surpassing $3.5 billion at a time when the war-torn country struggles to prevent the new coronavirus.

The National Oil Corporation, which dominates Libya’s critical oil industry, reported late Monday that production had been reduced to 95,837 barrels a day as of Sunday.

Powerful tribes loyal to Libya’s eastern-based forces seized large export terminals and choked off major pipelines in January, aiming to starve the Tripoli-based government of crucial revenues.

The eastern-based forces, led by military commander Khalifa Hifter, launched an offensive in April to capture the capital, Tripoli, clashing with an array of militias loosely allied with the U.N.-supported government. The fighting for Tripoli has ground to a stalemate in recent months.

The national oil company said the over $3.5 billion losses date back to Jan. 17, with daily losses at more than $1.1 million. It warned of a looming fuel shortage, given the government’s inability to pay for imports.

Oil, the lifeline of Libya’s economy, has long been a key factor in the civil war as rival authorities jostle for control of oil fields and state revenue. Libya has the ninth largest known oil reserves in the world and the biggest oil reserves in Africa.

The closure of the oil facilities is seen as part of Hifter’s efforts to capture Tripoli and punish adversaries there for sealing security and maritime agreements with Turkey, which opened doors for military support from Ankara.

Hifter’s side has accused the Tripoli-based administration of using oil revenues to finance militias and Syrian mercenaries sent by Turkey to help in the fighting against eastern-based forces.

The corporation said it has spent over $300 million since the start of the blockade to purchase and transport fuel into eastern Libya.

The shutdown also comes against the backdrop of a crumbling cease-fire mediated by Russia and Turkey, which support opposing sides of the conflict in the North African country.

Authorities have not confirmed any cases of the virus, but public health officials fear the global pandemic could devastate Libya. Last week, the warring sides expressed commitment to a humanitarian pause in fighting so authorities could focus on preventing the spread of the new coronavirus. However, clashes have continued.

Libya has been in turmoil since 2011, when a civil war toppled and killed longtime dictator Moammar Gadhafi.

© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


GlobalTalk
Libya's oil company says economic fallout from a protracted blockade of its vital oil facilities has resulted in losses surpassing $3.5 billion at a time when the war-torn country struggles to prevent the new coronavirus. The National Oil Corporation, which dominates...
Libya,Oil
399
2020-38-24
Tuesday, 24 March 2020 05:38 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved