On Monday, the government in eastern Libya announced the closure of all oilfields, halting both production and exports. This move has not yet been confirmed by Libya’s internationally recognized government in Tripoli, nor by the National Oil Corporation (NOC), which manages the country’s oil resources.
Waha Oil Company, a subsidiary of NOC, has signaled plans to gradually reduce its output due to ongoing protests and pressures. The company, which operates in partnership with TotalEnergies and ConocoPhillips, has a production capacity of about 300,000 barrels per day (bpd), exported through the eastern Es Sider port. Its five key fields in the southeast—Waha, Gallo, Al-Fargh, Al-Samah, and Al-Dhahra—account for significant portions of the country’s oil production.
The majority of Libya’s oilfields are located in the east, under the control of Khalifa Haftar and the Libyan National Army (LNA). However, the Benghazi government has not clarified how long the oilfields might remain closed. Engineers at the Messla and Abu Attifel fields reported that production continued as of Monday, with no orders to stop output.
Escalating Power Struggle
Libya is grappling with a power struggle over control of the central bank and its vital oil revenues. Tensions have escalated following efforts to remove Central Bank of Libya (CBL) head Sadiq al-Kabir, prompting rival armed factions to mobilize. On Monday, the Tripoli-based CBL suspended its services both domestically and internationally due to what it described as “exceptional disturbances.”
The CBL is the sole internationally recognized entity for managing Libya’s oil revenue, which is crucial to the nation’s economy. It expressed hope to resume normal operations soon, following a temporary shutdown last week after a senior bank official was kidnapped. Operations resumed after the official’s release.
Libya has faced instability since a 2011 NATO-backed uprising and has been divided between eastern and western factions since 2014. These divisions have drawn in international actors, including Russia and Turkey. Earlier this month, the NOC declared force majeure at Sharara, one of Libya’s largest oilfields with a capacity of 300,000 bpd, due to protests. Prior to the Sharara shutdown, Libya’s oil production was about 1.2 million bpd. If eastern oilfields cease operations, El Feel in southwestern Libya, with a capacity of 130,000 bpd, would be the only functioning field.