Libya's National Oil Company (NOC) declared force majeure at 11 oil fields across the country only a day after they were attacked by armed militants.
The company said it was "compelled and urgently needed" to take the decision due to destruction caused to some of the oil fields and nearby oil ports. The measure is a legal status that protects companies from liability when they cannot fulfill a contract for reasons beyond their control.
If these security challenges continue, NOC warned it would be forced to close all of the country's oil fields and ports leading to a nationwide halt of state financial revenue, public fuel, gas and electricity.
After producing over 1.5 million barrels-per-day before the overthrow of Libyan leader Muammar Al-Qaddafi in 2011, the security situation in Libya has led to production dramatically decreasing in December, 2014, to around 350,000 bpd.