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Increasing Oil Field Shutdowns in Libya Amid Political Disputes

August 28, 2024

Libya saw an increase in oil field shutdowns on Wednesday as production from the Sarir oil field neared a complete halt due to a political conflict over control of the Central Bank and oil revenues. Authorities in eastern Libya, where most of the oil fields are located, announced on Monday their intention to halt all production and exports.

The National Oil Corporation (NOC) has already declared force majeure at the Sharara oil field, one of Libya’s largest, with a production capacity of 300,000 barrels per day. There are also disruptions at the El Feel, Amal, Nafoura, and Abu Attifel Oil Fields.

In July, Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced around 1.18 million barrels of oil per day. The shutdown of Libya’s main source of revenue follows the dismissal of Central Bank Governor Sadiq al-Kabir by the Presidential Council based in Tripoli, leading to the mobilization of rival armed factions.

Prime Minister Abdul Hamid Dbeibeh stated this week that oil field closures should not be allowed under “false pretenses.” U.S. Africa Command leader General Michael Langley and Acting U.S. Ambassador Jeremy Berndt met with military commander Khalifa Haftar on Tuesday, who leads the Libyan National Army (LNA) controlling eastern and southern Libya.