Libya’s largest oil field, Sharara, has completely ceased production on Monday. This follows a gradual reduction in output over the weekend, as confirmed by sources familiar with the operations.
Production at the southern Libyan field has dropped from nearly 270,000 barrels per day (bpd) on Saturday when workers were instructed to begin curtailing output.
Unclear Motives and Political Blackmail Allegations
The exact reasons behind the decision to halt production remain unclear. Libya’s internationally recognized government has condemned the shutdown, labeling it as “political blackmail” without providing further details.
Libya is currently divided between two rival administrations, one in the capital Tripoli in the west and another in the east.
Ongoing Security Challenges and Past Disruptions
This shutdown highlights the persistent security challenges that have plagued Libya’s energy infrastructure for years.
In January, Sharara experienced a weeks-long force majeure, a contractual clause allowing for the suspension of deliveries, due to demonstrations.
Other oil and gas facilities in Libya, such as the Wafa field and a natural gas pipeline to Italy, have also faced disruptions following protests.
Libya’s Oil Production History
Libya’s oil production peaked at nearly 1.8 million bpd in 2008 before plummeting to around 100,000 bpd after the 2011 civil war and the death of Moammar Al Qaddafi.
Production has remained volatile since then, although it had stabilized at approximately 1.2 million bpd in recent months.
Conflicting Reports on Shutdown Causes
Local media sources have offered varying explanations for the Sharara shutdown. Some reports cite protests demanding improved socio-economic conditions, referencing a letter from Akakus Oil, the field’s operator.
Other outlets attribute the closure to Saddam Haftar, the son of military leader Khalifa Haftar, who commands the Libyan National Army, which controls the east and much of the south and has orchestrated blockades in the past.
Sharara Joint Venture Partners
Sharara is operated by Akakus Oil, a joint venture between Libya’s state oil firm National Oil Corp. and international energy companies: France’s TotalEnergies SE, Spain’s Repsol SA, Austria’s OMV AG, and Norway’s Equinor ASA.