Oil strikes cost Libya $130 million per day

Sept. 13, 2013 at 8:54 AM   |   Comments

TRIPOLI, Libya, Sept. 13 (UPI) -- The Libyan government is losing about $130 million a day because of the loss of oil production, the country's finance minister said.

Libyan oil production is grinding to a halt. Platts news service, which monitors the energy and metals industries, reported Thursday there was a near total blockade of oil exports from Libya after the National Oil Corp. declared force majeure on national export terminals.

Force majeure means NOC is freed of its contractual obligations because of circumstance beyond its control.

The U.S. Energy Information Administration, the analytical arm of the Energy Department, said this week Libya exported about 80,000 barrels of oil per day during the first week of July. That's down from 830,000 barrels per day in July.

Libyan Finance Minister Abdel Karim Kilani said the government was losing approximately $130 million per day because of the loss of oil exports.

"This revenue would not be recovered," he was quoted as saying by The Libya Herald Friday.

Libyan Prime Minister Ali Zeidan said Thursday he issued arrest warrants for armed gangs disrupting oil production at Libyan fields.

He was quoted by the Herald as saying production was "very limited" to no more than 300,000 barrels per day.

Before civil war in 2011, Libya was producing about 1.6 million barrels per day.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
Hershey's new logo launched, compared to emoji poop
Brazil Air Force, Saab discuss Gripen procurement deal
Google completes first phase of testing drone delivery system
Abercrombie & Fitch axes logos after years of declining sales and bad press
Kurds raise oil funds for refugees
Trending News