Libya is headed for a bit of a cash flow problem. After weeks of armed strikes at four major oil export terminals of Brega, Ras Lanuf, Sidra, and Zueitina including members of the Libyan army's Petroleum Facilities Guard that is supposed to be protecting these very oil installations from those who seek to disrupt operations with weapons. These strikes are in addition to other oil installations throughout the country that have experienced armed protest for more political reasons.As Bloomberg reports:
'“The above mentioned sea port terminals are closed due to Oil Security Guards who are on strike at these locations since the end of July 2013, which resulted total shutdown for these facilities and cease of all exports,” NOC said in the document, which is dated Aug. 18 and signed by Chairman Nuri Berruien.'
This is the first time that force majeure has been declared since 2011, when rebels battled Muammar Qadhafi for control of the country. With Libya's main source of government revenue, and indeed the lifeblood of Libya's economy, dwindling to a mere trickle, worries for Libya's ability to support itself are on the rise. With so much of the economy dependent on government spending, such as major infrastructure projects still left on hold since February 2011, the entire country is held in thrall to these strikers.The guards on strike are demanding higher salaries, and it is no surprise that the higher salaries now assigned to police officers by Prime Minister Ali Zeidan will help provide incentives for former revolutionaries to leave Libya's various militias for official parts of the military and security forces. Yet paradoxically payment of these salaries is only possible if oil exports can continue.Unlike in Egypt, Libya's military and security forces have largely shied away from responding to protests -even armed ones - with force. These tactics could change if blockades of the ports and oil fields continue.