Crude oil production at Libya's Sharara oilfield has fallen to approximately 120,000 barrels per day after an armed group closed a valve on the export pipeline. The National Oil Corporation warned that continued closure could lead to a force majeure declaration, impacting national revenues amid global supply concerns.
The blockade at Libya's Sharara oilfield threatens to reduce global oil supply at a time of existing geopolitical risks in the Middle East, potentially impacting global oil prices and national revenues for Libya.
Crude oil production at Libya’s largest oilfield, Sharara, has slumped to approximately 120,000 barrels per day after an armed group closed a valve on the pipeline that carries crude oil from the field to the Zawiya port for exports. The National Oil Corporation (NOC) stated that the closure of Valve No. 7 caused a pressure buildup, leading to the significant reduction in output. The field, operated by Akakus Oil Operations, was estimated to produce about 340,000 bpd before the incident. The NOC warned that continued closure could compel it to declare force majeure on Sharara output and exports, which would harm the national economy by reducing state revenues and expose the oil transport system to technical and operational risks. This disruption adds to global supply concerns amid ongoing issues in the Middle East, including uneven shipments through the Strait of Hormuz and offline exports from Saudi Arabia's Red Sea coast following a drone attack on the East-West pipeline.
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