Sirte Oil Company halts production due to lack of funds

Libya's Oil sector continues to struggle as Sirte Oil Company halts productions due to a stark lack of funding

Libya’s National Oil Corporation continues to place the blame on the halting of the country’s oil production on the central bank, demanding it provides the necessary financial arrangements [Photo: Internet]
Due to a lack of sufficient funds, the Sirte Oil Company (SOC) declared that it would be unable to continue producing oil, resulting in a 72-hour production halt. 

This was revealed in a letter from the company’s Chairman of the Board of Directors, Masoud Suleiman Musa, to Mustafa Sanalla, head of Libya’s National Oil Corporation (NOC).

The decision to halt oil production was made due to “the company’s very critical financial position and its failure to fulfil its contractual obligations to contractors,” according to the letter.

The company also attributed the suspension of oil production to an “accumulation of debts and a lack of spare parts, oils, and chemicals needed for operations,” according to the letter.

The SOC urged the Chairman of the NOC to contact the appropriate authorities to secure the funds needed to continue operations. “Scarcity of the operating and capital expenditure that has not been liquidated for more than 7 months,” the corporation complained.

Due to a budget dispute with the country’s Central Bank, the NOC declared force majeure on exports from the port of Hariga earlier this week and said it might expand the measure to other facilities. The NOC said in a statement that daily lost income could be as high as 118 million dinars ($26 million).

The views expressed in Op-Ed pieces are those of the author and do not purport to reflect the opinions or views of Libyan Express.
How to submit an Op-Ed: Libyan Express accepts opinion articles on a wide range of topics. Submissions may be sent to Please include ‘Op-Ed’ in the subject line.
You might also like

Submit a Correction

For: Sirte Oil Company halts production due to lack of funds

Your suggestion have been successfully submitted

There was an error while trying to send your request. Please try again.

Libyan Express will use the information you provide on this form to be in touch with you and to provide updates and marketing.