Libya Weighs Force Majeure After Drone Attacks on Zawiya Oil Hub

Libya's National Oil Corporation (NOC) may declare a force majeure on exports from the Zawya oil terminal following drone attacks on the facility. The Zawya terminal, which processes crude oil from the country's largest oil field, Sharara, has a daily capacity of 120,000 barrels. A storage tank at the terminal, containing 4.5 million liters of gasoline, was destroyed by a drone strike, potentially exacerbating a local fuel shortage.

Additionally, another drone targeted an oil blending facility at the Zawya terminal. This marks the third drone attack on the oil terminal within a few days. While the identity of the assailants remains unconfirmed, Libya's oil infrastructure has historically been targeted by various groups seeking political control. Despite the attacks, the NOC remains optimistic about boosting Libya's oil production, which currently stands at 1.4 million barrels daily, to 2 million barrels daily by the early 2030s.

This ambitious target is made possible by a $2 billion lifeline received from the latest Libyan budget, which the NOC's CEO, Masoud Suleman, views as a much-needed boost. The company recently declared the Essar oil discovery commercially viable, in partnership with Austrian energy firm OMV, as Libya seeks to revive its oil industry through strategic partnerships with major oil companies.