Libya’s oil company says largest oil field shut down again

The development comes after militias allied with the UN-government in the Libyan capital, backed by Turkey, gained the upper hand in the fighting last week.

The militias retook the capital's airport, all main entrance and exit points to the city and a string of key towns near Tripoli, forcing rival Libyan forces commanded by Khalifa Haftar to pull out.

Haftar has waged a year-long campaign trying to capture the Libyan capital, with thousands killed in the fighting, including civilians, and tens of thousands displaced.

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The National Oil Corporation said Brig. Mohammed Khalifa, the commander of the oil facilities guard force in the country’s south, which answers to Haftar, requested that the operations at the Sharara oil field, about 900 kilometres (560 miles) south of Tripoli, to be halted. 

It said it instructed the employees to reject "any military orders" regarding the operating and the maintenance of the field. Two engineers at the field said they already halted operations, and the field was re-closed. They spoke on condition of anonymity because they were not authorised to brief the media.

The Libyan oil company said it has again invoked force majeure, a contract clause that frees a party from liability whenever an extraordinary event or circumstance beyond the party's control takes place.

On Monday, the Tripoli-allied forces advanced toward the strategic coastal city of Sirte, which has been in Haftar's hands since last year to open the gateway to oil facilities in Libya’s south.

On Sunday, the oil company had said production was resumed at the Sharara field, following negotiations with the tribes to end its closure, in place since January. Production also resumed on Monday in the al-Feel oil field, it said. 

Sharara was to restart at a capacity of 30,000 barrels a day, with an expected return to full capacity, around 290,000 barrels a day, within three months. 

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.

Haftar's forces have painted their recent defeats as tactical measures to give the UN-backed peace process a chance. But the Tripoli-allied militias said on Monday they were determined to take Sirte, once a stronghold of the Islamic State group in Libya.

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