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Libya’s eastern-based administration on Monday announced that it was shutting down all oil fields under its control and suspending production and exports until further notice after a flare-up in tension over the leadership of the Central Bank of Libya (CBL). Oilfields in eastern Libya account for almost all the country’s production. The Benghazi government did not specify for how long the oil fields could be closed.
There was no confirmation from the country’s internationally recognised government in Tripoli or from the National Oil Corp (NOC), which controls the country’s oil resources. NOC subsidiary Waha Oil Company, however, said it planned to gradually reduce output and warned of a complete halt to Libya’s production, citing unspecified protests and pressures. Another subsidiary Sirte Oil Company also said it would cut output, calling on authorities to intervene to maintain production levels”. Nearly all of Libya’s oil fields are in the east, which is under the control of Khalifa Haftar who leads the Libyan National Army (LNA).
If eastern production is halted, El Feel in southwestern Libya would be the only functioning oilfield, with a capacity of 130,000 bpd. Overall oil production was about 1.18 million barrels per day in July, according to the Organization of the Petroleum Exporting Countries, citing secondary sources. While the Tripoli-based Government of National Unity provided no confirmation, its head Prime Minister Abdulhamid al-Dbeibah said in a statement oilfields should not be allowed to be shut down “under flimsy pretexts”.
Libya’s oil revenues have stoked tension for years in a country that has had little stability since a 2011 NATO-backed uprising. It split in 2014 with eastern and western factions that eventually drew in Russian and Turkish backing. Tensions have escalated this month after efforts by political factions to oust the Central Bank of Libya (CBL) head Sadiq al-Kabir, with rival armed factions mobilising on each side.
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The Tripoli-based CBL said on Monday that it had suspended its services at home and abroad “due to exceptional disturbance. The central bank is the only internationally recognised depository for Libyan oil revenue, which provides vital economic income for the country. The Central Bank of Libya hopes that its ongoing efforts in cooperation with all relevant authorities will allow it to resume its normal activity without further delay.
