Libya’s National Oil Corporation (NOC) announced on Friday that the country’s oil production has suffered a significant setback due to ongoing closures of key oilfields. The conflict between rival eastern and western factions has resulted in a loss of approximately 63% of the country’s total oil output.
The escalating oil blockade, triggered by eastern leaders’ demands for the reinstatement of the central bank governor, has further exacerbated the crisis. The struggle for control over the Central Bank of Libya, a crucial institution in a nation heavily reliant on oil revenue, threatens to destabilize the country.
The NOC emphasized the critical role of the oil sector in Libya’s economy, stating that restarting the halted oilfields would require substantial financial resources and technical expertise. The company clarified that the closures are not directly related to its operations and that its teams are currently evaluating the losses incurred.
The repeated shutdowns have had a devastating impact on Libya’s oil production, leading to infrastructure deterioration and hindering efforts to increase output. Eastern factions have maintained their stance, vowing to keep oil production halted until the internationally recognized government in Tripoli reinstates the dismissed central bank governor.
The ongoing power struggle between the eastern and western factions, with support from Turkey and Russia, continues to cast a shadow over Libya’s future and its ability to recover its vital oil industry.