Libya’s eastern government announced on Monday the shutdown of all oilfields, stopping production and exports. There was no reaction from the internationally recognized government in Tripoli, and the National Oil Corp (NOC), which manages the country’s oil resources, did not confirm the decision.
Waha Oil Company, a subsidiary of the National Oil Corp (NOC), announced plans to gradually cut production and warned of a potential complete halt due to “protests and pressures.”
Operating in partnership with TotalEnergies and ConocoPhillips, Waha has a capacity of approximately 300,000 barrels per day (bpd), exported through the eastern port of Es Sider.
It manages five major fields, including Waha, which produces over 100,000 bpd, along with Gallo, Al-Fargh, Al-Samah, and Al-Dhahra.
Most of Libya’s oilfields are located in the east, controlled by Khalifa Haftar and the Libyan National Army (LNA)
The duration of the oilfield closures was not specified by the Benghazi government.
Meanwhile, engineers at Messla and Abu Attifel informed Reuters that production was continuing and no halt orders had been received.
Authority Conflict
In Libya, factions are locked in a power struggle over control of the central bank and oil revenue. Tensions have risen as political groups attempt to oust Central Bank of Libya (CBL) chief Sadiq al-Kabir, leading to mobilization by rival armed factions.
On Monday, the Tripoli-based CBL announced it had suspended services both domestically and internationally “due to exceptional disturbance”.
The bank, as the sole internationally recognized holder of Libyan oil revenue, is crucial to the country’s economy.
“The Central Bank of Libya hopes that its ongoing efforts in cooperation with all relevant authorities will allow it to resume its normal activity without further delay,” the bank stated.
Libya briefly suspended operations last week after the kidnapping of a senior central bank official, but resumed the next day following the official’s release.
The country, a major oil producer, has struggled with instability since the 2011 NATO-backed uprising, leading to its split in 2014 into eastern and western factions supported by Russia and Turkey.
The National Oil Corporation (NOC) declared force majeure at the Sharara oilfield, one of Libya’s largest with a capacity of 300,000 bpd, due to protests.
Before the shutdown, Libya’s oil production was at 1.2 million bpd. If production halts in the east, only the El Feel field, with a capacity of 130,000 bpd, would remain operational.
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