Armed group shuts valve on Libya oil pipeline — Euronews

In Libya, an unidentified armed group shut a valve on the pipeline connecting the country’s largest oil field, El Sharara, with the coastal city of Zawiya. As a result, production at the field has fallen significantly, Euronews reports, citing Libya’s National Oil Corporation (NOC).

Threat to exports and refinery operations

El Sharara is located about 700 kilometres south of Tripoli. The pipeline connects the field to Zawiya, where one of the country’s main export terminals is located. According to the NOC, the valve closure caused pressure to build up in the pipeline and a significant drop in production.

The corporation said that if the blockage persists, it may be forced to declare force majeure. This legal mechanism allows suppliers to suspend the fulfilment of contractual obligations due to circumstances beyond their control. The NOC last declared force majeure at El Sharara in January 2024 during a previous shutdown.

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The company also warned that further disruptions could force the shutdown of the Zawiya oil refinery, located about 45 kilometres west of Tripoli. The NOC noted that reduced production would directly cut state revenues at a time of rising global oil prices.

Field provides one-third of production

El Sharara is Libya’s largest oil field. At full capacity, it produces about 350,000 barrels of oil per day, accounting for roughly one-third of the country’s total output.

The field is operated by Akakus Oil Operations, a joint venture of the NOC, Spain’s Repsol, France’s TotalEnergies, Austria’s OMV and Norway’s Equinor. Since the overthrow of Muammar Gaddafi in 2011, Libya’s oil industry facilities have repeatedly been targeted by armed groups and protesters making political or economic demands. El Sharara was previously shut down for almost two years, from November 2014 to December 2016, due to a pipeline blockade.