Libya Oil Shut-In Cost Nation Over $2 Billion Since January

(Bloomberg) -- Constraints on Libya’s oil output have cost the OPEC member $2.1 billion since Jan. 24, the state-run National Oil Corp. said, laying bare the mounting costs of the latest bout of fighting in the nation.

Production as of Feb. 23 stood at 122,430 barrels a day, the NOC said Tuesday, adding that $745 million in revenue had been lost since Jan. 24. Crude oil production stood at 1.22 million barrels a day before the declaration of force majeure on Jan. 18, the NOC said in a statement.

The figures paint a stark picture of the cost of the fight between the internationally recognized government in Tripoli and forces loyal to eastern-based commander Khalifa Haftar, who launched an offensive to seize the capital in April. The contest has morphed into a proxy war of regional powers, with Haftar backed by Egypt, the United Arab Emirates and Russian mercenaries while Turkey provides military and logistical support to Prime Minister Fayez al-Sarraj’s government.

Libya’s output has plunged since supporters of Haftar began a blockade of oil ports in mid-January.

The United Nations and others in the international community are struggling to secure a lasting cease-fire in the war-ravaged nation that sits atop Africa’s largest crude reserves. Military officials from both sides agreed on Monday to a draft cease-fire accord in Geneva, though their political leaders must still approve it.

A concurrent push toward reconciliation came up short when a parliament in Libya’s east suspended its participation in the planned talks amid a dispute over the inclusion of representatives from Tripoli, Libyan media reported.

To contact the reporter on this story: Tarek El-Tablawy in cairo at teltablawy@bloomberg.net

To contact the editors responsible for this story: Nayla Razzouk at nrazzouk2@bloomberg.net, Bruce Stanley, Michael Gunn

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