Post-Force Majeure Achievements and Performance of the National Oil Corporation

Introduction

In the wake of the recent force majeure declaration, the National Oil Corporation (NOC) faced significant challenges in maintaining oil and gas production, as well as meeting domestic energy demands. However, through strategic planning, swift action, and efficient resource allocation, the NOC was able to overcome these obstacles and achieve impressive results following the lifting of the force majeure. This chapter outlines the performance of the NOC before and after the force majeure, focusing on production, domestic gas consumption, and the Corporation’s overall success in restoring operations.

1. Oil and Gas Production Before and After the Lifting of Force Majeure

The period of force majeure presented a substantial disruption to Libya’s oil and gas production. The following data provides a clear comparison of production levels before and after the force majeure was lifted, highlighting the rapid recovery achieved by the NOC.

• Production Before Force Majeure (August 1, 2024):

• Crude oil and condensate production: 1,323,650 barrels per day.

• Natural gas production: 221.988 million cubic feet per day.

• Production After Lifting of Force Majeure (October 17, 2024):

• Crude oil and condensate production: 1,326,550 barrels per day.

• Natural gas production: 203.845 million cubic feet per day.

Key Differences in Production:

• Crude oil and condensate production: Increased by 2,900 barrels per day, signifying the NOC’s ability to recover and even surpass previous production levels within a short period.

• Natural gas production: Decreased by 18.143 million cubic feet per day, reflecting some residual challenges in gas field operations, though mitigation measures have been initiated to address this.

2. Domestic Gas Consumption Performance

The force majeure not only impacted production but also affected the domestic consumption of gas. Despite this, the NOC implemented immediate recovery plans to ensure that key sectors, particularly electricity generation and industrial manufacturing, continued to receive adequate gas supplies. The table below compares domestic gas consumption before and after the force majeure, illustrating how consumption patterns shifted as the situation stabilized.

• Consumption Before Force Majeure (July 13, 2024):

• Total domestic gas consumption: 1,172.5 million cubic feet per day.

• General Electricity Company of Libya (GECOL): 1,007.9 million cubic feet per day.

• National Cement Company: 29.92 million cubic feet per day.

• Other industrial sectors: 84.1 million cubic feet per day.

• NOC facilities: 50.57 million cubic feet per day.

• Consumption After Lifting of Force Majeure (October 16, 2024):

• Total domestic gas consumption: 1,090 million cubic feet per day.

• GECOL: 857 million cubic feet per day.

• National Cement Company: 69 million cubic feet per day.

• Other industrial sectors (e.g., iron and steel): 38 million cubic feet per day.

• NOC facilities: 121 million cubic feet per day.

Key Differences in Gas Consumption:

• Total gas consumption: Decreased by 82.5 million cubic feet post-force majeure, primarily due to the temporary challenges in gas supply.

• GECOL consumption: Dropped by 150.9 million cubic feet, largely reflecting reduced operational capacity during the force majeure period.

• National Cement Company consumption: Significantly increased by 39.08 million cubic feet, reflecting strong recovery and increased industrial activity.

• Other sectors: Experienced a decrease of 46.1 million cubic feet, indicating the impact of force majeure on non-essential industrial gas users.

• NOC facilities consumption: Increased sharply by 70.43 million cubic feet, demonstrating the NOC’s prioritization of internal operations and its commitment to resource optimization.

3. Strategic Achievements and Solutions

The NOC’s swift response to the challenges posed by force majeure exemplifies its resilience and capability in managing crises. The following strategies were implemented to mitigate the impact and restore normal operations:

• Resource Reallocation and Prioritization:

The NOC efficiently reallocated gas supplies, prioritizing sectors critical to Libya’s energy infrastructure, such as GECOL and industrial manufacturers, while ensuring its own facilities received the necessary resources to resume full production capacity.

• Collaborative Efforts with Key Stakeholders:

By working closely with stakeholders in the energy and industrial sectors, the NOC coordinated recovery efforts, enabling the National Cement Company and other industries to increase their gas consumption as they ramped up operations post-force majeure.

• Focused Recovery of Oil Production:

Despite the challenges, the NOC successfully increased crude oil and condensate production beyond pre-force majeure levels, a testament to its advanced technical capabilities and the dedication of its workforce.

4. Conclusion: A Positive Outlook Post-Force Majeure

The NOC’s recovery following the force majeure demonstrates its exceptional ability to navigate complex operational challenges while safeguarding Libya’s energy security. The significant increase in oil production and the efficient management of gas resources underscore the Corporation’s resilience and preparedness for future uncertainties.

With oil and condensate production levels now exceeding those prior to the force majeure and gas consumption in key sectors steadily rising, the NOC has positioned itself as a key driver of Libya’s economic recovery. Moving forward, the Corporation remains committed to improving operational efficiencies, optimizing resource management, and ensuring sustainable growth across the energy sector.

By rapidly overcoming the obstacles posed by the force majeure, the NOC has solidified its standing as a reliable and indispensable entity in Libya’s energy landscape.