The government of eastern Libya announced the closure of all oil fields in the country, halting production and exports. The move was made without any announcement from the internationally recognized government. The National Oil Corp did not confirm the closure, but its subsidiary, Waha Oil Company, plans to gradually cut production, citing “protests and pressure.”
Waha Oil Company, a joint venture with TotalEnergies and ConocoPhillips, operates major oil fields in the southeast, with a production capacity of around 300,000 barrels per day. Most of Libya’s oil fields are in the east under the control of Khalifa Haftar, leader of the Libyan National Army.
Libya’s political factions are vying for control of the central bank and oil revenues, leading to recent clashes and attempts to oust the central bank head. The Central Bank of Libya suspended operations due to disruptions, affecting the vital oil revenues that support the country’s economy.
With ongoing instability in Libya, the closure of oil fields adds to the challenges the country faces. The potential impact on oil production, which was at 1.2 million barrels per day before recent closures, raises concerns for both the country and global markets.