Libya declares force majeure at Sharara oilfield amid protests

Libya's National Oil Corporation (NOC) declared force majeure on Sunday at the Sharara oilfield in southern Libya amid protests.

Force majeure is a legal measure that exempts contractual parties from any obligations arising due to an event beyond their control.

''The closure has resulted in the suspension of crude oil supplies from the field to Zawiya terminal,'' the NOC said in a statement.

''Negotiations are ongoing to resume production as soon as possible,'' it added.

The same oilfield was closed on Jan. 3 after demonstrators stormed it in protest of fuel shortages in southern Libya.

According to a local source, negotiations with the protesters have failed, forcing the NOC to declare force majeure on the field.

Protesters demand the establishment of an oil refinery in the area, maintaining deteriorating roads and employment for locals in oil companies.

The fair distribution of oil revenues remains one of the sticking issues in Libya.

El-Sharara oilfield produces more than 300,000 barrels of crude oil per day, forming roughly one-third of the oil-rich country's production.

Libya holds Africa's largest crude reserves, but years of conflict and violence in the country since the 2011 ouster of ruler Muammar Gaddafi has hobbled production and exports.