Libya says oil shutdown has caused over $255 million losses

closure of Libya’s major oil fields and production facilities has resulted in losses of more than $255 million in six-day period ending Jan. 23, country’s national oil company said Saturday.

closures came when powerful tribal groups loyal to military commander Khalifa Hifter earlier this month seized several large export terminals along eastern coast as well as sourn oil fields. Hifter controls eastern and much of sourn part of country.

moves were meant to challenge Hifter’s versaries in west, U.N.-backed, but weak rival government that controls capital, Tripoli.

National Oil Corporation, which dominates Libya’s critical oil industry, said its assessment showed that “ illegal shut down of its facilities has resulted in losses of nearly 256.5 million USD until January 23.”

It said oil production has fallen from over 1.2 million barrels a day to 320.154 barrels a day.

“ Until January 23, 2020, cumulative production losses in barrels reached 3,907.318 barrels in six days,” C said.

corporation has sought to reassure Libyans. It said “fuel is still available in most regions” and that it h “sufficient stor in Central and Eastern regions.”

closure was seen as part of Hifter’s efforts to take control of Tripoli and punish his versaries re for sealing security and maritime agreements with Turkey, opening doors for unlimited military support from Turks.

Oil, lifeline of Libya’s ecomy, has long been a key factor in civil war, as rival authorities jostle for control of oil fields and state revenue. Libya has ninth largest kwn oil reserves in world and biggest oil reserves in Africa.

closure “almost certainly was meant to remind foreign states that Hifter retains control over country’s oil and gas facilities, which generate almost all country’s income, even as he enjoys access to revenues, which accrue to his Tripoli rivals,” International Crisis Group, a Brussels-based think tank, said in a report earlier this week.

“His mess: conflict must be resolved in a manner that reflects actual power balance on ground, which he views as being squarely in his favor,” report said.

closure came just two days before world powers with interests in Libya’s long-running conflict pledged in a summit in Berlin to respect a much-violated arms embargo and push opposing factions to reach a truce.

Hifter’s self-styled Libyan Arab Armed Forces began offensive on capital in April last year, clashing with an array of militias, loosely allied with Tripoli-based government. clashes killed over 3,000 people and displaced 200,000 people in Tripoli.

offensive has threatened to plunge Libya into chaos rivaling 2011 conflict that ousted and later killed long-time dictator Moammar Ghafi.

civil war has been on brink of a major escalation in recent weeks. Various foreign players back Libya’s rival governments, and y have recently been stepping up ir involvement in oil-rich nation’s conflict.

Hifter is backed by Egypt, Russia and United Arab Emirates, while embattled U.N.-backed government is aided by Turkey and Qatar.