Libyan PFG Suspends Oil Exports in Oil Crescent

The Petroleum Facilities Guard (PFG) in Libya announced on Sunday, the suspension of the export of crude oil from the Oil Crescent region, in protest against the delay in salaries.

The members of a Libyan paramilitary force responsible for safeguarding the OPEC nation’s oil ports ordered a halt in crude shipments at two eastern terminals while they press salary demands.

Petroleum Facilities Guard members ordered the suspension of loading operations at Es Sider and Ras Lanuf, according to people familiar with the situation, who asked not to be identified because they lack authorization to speak to media. The tanker Dubai Hope, currently loading crude at Ras Lanuf, would be the last to do so until the protesters’ demands are met, according to two of the people.

Negotiations are under way to resolve the salary dispute, according to one of the people. The protesters have also that their ultimatum for the government to pay their delayed salaries ends on Sunday.

The halt would threaten a recovery in the Arab nation’s oil exports and production. While it might be resolved quickly, the stoppage underscored the lingering political tensions in Libya following a truce in its civil war last year.

The North African country’s output surged from almost zero to nearly 1.25 million barrels daily after a blockade of ports and fields by eastern-based forces ended in September. A tentative peace in the civil war led to the lifting of the blockade. However, the country is struggling to maintain the recovery due to the dilapidated condition of many pipelines and other facilities.

Earlier this month, the guards at Hariga temporarily refused entry to the tanker Olympic Fighter before allowing it to load. They delivered the government an ultimatum until later in January to pay what they said were overdue salaries.

The Guard was originally formed as a neutral force to defend oil ports and fields. But its members contributed to a crash in Libyan crude output at the start of last year by blockading some installations on behalf of various groups and as they sought to press their own demands.

In a separate but more positive example of the challenges it faces, Libya restarted a pipeline that carries crude to Es Sider, after a shutdown that caused the nation’s production to drop to the lowest level in two months.