Libya's National Oil Corporation (NOC) has issued a warning regarding potential force majeure at the Zawiya refinery due to ongoing drone attacks targeting oil facilities in the region.

Context

The Zawiya refinery is Libya's largest operational refinery, with significant connections to the Sharara oilfield.S2

Key points

• NOC reported a third drone attack on oil assets in Zawiya over a recent weekend.S1

• The latest drone strike targeted an oil blending and filling plant near a main oil tank.S1

• NOC may declare force majeure if drone attacks persist, potentially halting operations.S1

• The Zawiya refinery has a capacity of 120,000 barrels per day.S2

• The refinery is linked to the Sharara oilfield, which has a production capacity of 300,000 barrels per day.S2

• Ras Lanuf, another major refinery, is currently out of operation, increasing the importance of Zawiya.S2

• The drone attacks pose a significant threat to Libya's oil production and domestic supply.S1

• NOC's warning highlights the vulnerability of oil infrastructure in conflict-affected areas.S1

Why it matters

• Libya's oil sector is crucial for its economy, and disruptions can have widespread impacts.S1

• Force majeure declarations can lead to significant operational and financial consequences for the NOC.S1

What to watch

• Monitor developments regarding the security situation around Zawiya and its impact on oil production.S1

• Watch for NOC's response if drone attacks continue and whether force majeure is declared.S1