Libya’s NOC Declares Force Majeure at Refinery After Clashes

(Bloomberg) -- Libya’s National Oil Corp. declared force majeure at the Zawiya refinery in the country’s west after clashes between armed groups caused a fire.

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The state firm said the blaze broke out early Sunday morning after storage units were struck by gunfire. The tanks sustained “significant damage,” the NOC said in a statement on its website, adding that the fire has been contained.

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It didn’t identify the groups fighting. Libyan media reported the clashes were between two tribes and not connected to the OPEC member’s long-running division between rival eastern and western governments. One person was killed and others wounded before calm was restored, local media said.

The Zawiya facility, about 45 miles west of the capital, Tripoli, refines small amounts of fuel for domestic use while storing larger quantities that are imported due to Libya’s limited processing capacity. A NOC spokesman, Khaled Ghulam, said fuel shipments arriving at the port were unaffected and there was enough in storage tanks to keep supplying Libya’s consumers.

The North African nation has been roiled by violence and instability since the uprising that ousted long-time leader Moammar Qaddafi in 2011. It sits atop the continent’s largest proven oil reserves, a resource that’s a frequent target of armed groups vying for influence.

The NOC had urged the internationally recognized government in Tripoli to intervene and resolve the clashes “by any means necessary.”

Earlier this month, officials said Libya’s oil production had risen to 1.422 million barrels — its highest daily level in more than a decade.

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(Updates with comments from NOC spokesman in fourth paragraph.)

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