The National Oil Corporation (NOC) has declared the force majeure and the halting of oil operations at the Marsa Al Hariga oil port.
"This announcement comes as a result of the Central Bank of Libya's refusal to liquidate the oil sector budget for long months, which led to an exacerbation of the indebtedness of some companies, and on the top of which is the Arabian Gulf Oil Company," a statement by the NOC said Monday.
The NOC expressed its understanding of the company's motive to suspend the operations and said it seeks an excuse for the Government of National Unity due to the delay in approving the planned budget for the current year.
It placed a full legal responsibility on the CBL, denouncing "the blocking of the necessary financial arrangements", which put the operating companies in trouble.
Meanwhile, the head of the National Oil Corporation, Mustafa Sanallah, warned of the consequences of ignoring the integrity of the NOC's assets and the significant damage that such measures could cause to equipment and surface facilities.
"Based on professional and moral responsibility, the National Oil Corporation has addressed the Ministry of Oil and Gas and informed it of the deteriorating financial position of the oil sector and the dangers facing it due to the failure to liquidate the necessary budgets," Sanallah said.
According to the Initial estimates of the NOC, the daily losses may exceed 118 million Libyan dinars and will negatively affect the revenues of April and thus the public treasury revenues.