A Crippled Industry

By John Hamilton

John Hamilton is Director of London's Cross-border Information (CbI) office where he plays a key role in the company's business development and strategy. He is a specialist in North Africa and produces regular analyses, detailed monitoring reports and briefings on Libya, Algeria, Tunisia and Egypt for CbI's private clients. Hamilton is also a contributing editor at African Energy.

The attacks carried out by Islamic State (ISIS) on the Ras Lanuf and Sidra oil export terminals this year have demonstrated definitively that the jihadist organization has no intention of exploiting Libyan oil resources for commercial gain. In fact, this was never an option. While ISIS was able to profit from its control over oil fields in Syria, there is nowhere for it to export Libyan crude, even assuming it could successfully commandeer both fields and terminals. Its strategy, therefore, is one of weakening what remains of the state by denying it resources and revenue. In a series of attacks since January 4, ISIS has crippled the terminals and damaged or destroyed storage tanks that are necessary for managing exports. Out of the 19 tanks at Sidra and the 15 at Ras Lanuf, only five at each terminal remain functional. Of the 3m bbls (barrels) of oil stored in the tanks, approximately 80 percent has been destroyed.

Speaking at the Middle East and North Africa Energy conference in London on January 26, National Oil Corporation (NOC) chairman in Tripoli, Mustafa Sanalla, described the recent attacks as being “very targeted” in that they caused a lot of damage using very few people. The attack on Sidra involved no more than 50 ISIS fighters, while that on Ras Lanuf involved three pick-up trucks. Sanalla warned that he expected more ISIS attacks on the facilities.

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