Several oilfields in Libya have ceased production as tensions escalate between rival governments over control of the central bank and oil revenues. Authorities in eastern Libya, where most oilfields are located, threatened to shut down all operations, intensifying their standoff with the internationally recognized government in Tripoli, which relies heavily on these fields for revenue.
While there has been no official confirmation of closures from the Tripoli government or the National Oil Corporation (NOC), engineers reported that production has halted at the southeastern Amal and Nafoora oilfields, and output has been reduced at Abu Attifel. The southwestern El Feel oilfield, operated by a joint venture between NOC and Italy’s Eni, has also stopped production.
Eastern military leader Khalifa Haftar asserted that the central bank should remain untouched, condemning what he termed “illegal actions” by entities without legitimacy. In response, Prime Minister Abdulhamid al-Dbeibah from Tripoli stated that oilfields should not be closed for “flimsy pretexts.”
The NOC’s Waha Oil Company announced plans to gradually reduce output, hinting at a complete halt if protests and pressures continue. Earlier this month, the NOC declared force majeure at the Sharara oilfield, one of Libya’s largest, due to protests.
Libya’s total oil production was approximately 1.18 million barrels per day in July, according to OPEC. On Tuesday, Brent crude prices dipped slightly to around $81 a barrel, following a rebound driven by concerns over potential supply disruptions from Libya.
Tensions have increased further following a decision by Presidency Council head Mohammed al-Menfi in Tripoli to replace the central bank’s chief, a move rejected by the eastern parliament.