Libyan oil production declines amid political conflicts, field closures
Date
8/29/2024 8:44:31 AM
(MENAFN) Oilfield closures in Libya have intensified as the Sarir oilfield's output has been significantly reduced due to a political dispute concerning control of the central bank and oil revenues. Reports indicate that production at the Sarir field has been cut to near zero, with the field previously producing approximately 209,000 barrels per day. The National Oil Corporation (NOC) has already declared force majeure on the Sharara oilfield, which has a capacity of 300,000 barrels per day, and disruptions have also been reported at other significant oilfields including El Feel, El Amal, El Nafoura, and Abu Attifel.
The escalation of production halts comes in response to the dismissal of Libya’s central bank governor, Sadiq al-Kabir, by the Tripoli-based Presidential Council. This decision has triggered mobilization from rival armed factions and heightened tensions. In July, Libya was producing about 1.18 million barrels of oil per day, making the recent shutdowns a severe blow to the country’s primary revenue source. Prime Minister Abdul Hamid Dbeibah, who leads the Tripoli-based Government of National Accord, has condemned the shutdowns as unjustified. In response to the crisis, General Michael Langley, the commander of US forces in Africa, and Jeremy Burnett, Chargé d'Affaires at the US Embassy, met with Khalifa Haftar, the military commander of the eastern Libyan forces, to address the ongoing conflict and its impact on oil production.
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