Key facts
- Libya's National Oil Corporation (NOC) threatened to declare force majeure.
- Production halted at Hamada and Tahara oilfields and a pumping station.
- The Petroleum Facilities Guard closed a valve on the Hamada-Zawiya crude pipeline.
- The Guard wants to be transferred financially and administratively from the defense ministry to NOC.
- Libya is targeting 1.6 million bpd by the end of 2026 and 2 million bpd by the early 2030s.
- NOC Chairman Masoud Suleman estimates $36 billion to $40 billion in foreign investment is needed.
Libya's National Oil Corporation (NOC) is threatening to declare force majeure after members of the Petroleum Facilities Guard (PFG) shut a valve on the main Hamada-Zawiya crude pipeline, halting production at the Hamada and Tahara oilfields and a pumping station. The PFG, which is assigned to protect the country's oil infrastructure, stated it would impose partial production cuts at several additional fields, including Wafa, Al-Khamsa and El Feel, for one week. A full shutdown would follow if its demands are not met.
The PFG wants to be transferred financially and administratively from Libya's defense ministry to the NOC and has requested a timetable for this move. NOC stated that it could declare force majeure if the closed valve is not reopened or if similar shutdowns affect other oilfields.
This disruption occurs as Libya aims to significantly increase its oil production. Output has recently climbed to approximately 1.4 million barrels per day, the highest level in over a decade. NOC has set targets of 1.6 million bpd by the end of 2026 and 2 million bpd by the early 2030s. Achieving these goals may require between $36 billion and $40 billion in foreign investment, according to NOC Chairman Masoud Suleman. International companies, including Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL, have already signed exploration and production-sharing agreements this year, with BP, Shell, Exxon, and Chevron also pursuing a return to the country. NOC received a $2 billion allocation in Libya's 2026 budget to support its production plans. However, the vulnerability of oilfields to control over valves remains a persistent issue.