Libya's east government says closes oil fields, suspends exports
Libya's east government says closes oil fields, suspends exports
Eastern Libya's government said all oilfields would close as tensions rose to remove the head of the Central Bank of Libya.
2 min read
Most of Libya's oilfields are in the east, which is under the control of Khalifa Haftar who leads the Libyan National Army [GETTY]
The government in eastern Libya announced on Monday that all oilfields would be closed down and production and exports halted, but the country's internationally recognised government in Tripoli did not respond.
The National Oil Corp (NOC), which controls the country's oil resources, also did not confirm.
However, NOC subsidiary Waha Oil Company announced it planned to reduce output gradually and warned of a complete halt to production, citing "protests and pressures."
Waha, which operates a joint venture with TotalEnergies and ConocoPhillips, has a production capacity of about 300,000 barrels per day (bpd) and exports through the eastern port of Es Sider.
It operates five main fields in the southeast, including Waha, which produces more than 100,000 bpd, and Gallo, Al-Fargh, Al-Samah, and Al-Dhahra.
Most of Libya's oilfields are in the east, which is under the control of Khalifa Haftar, who leads the Libyan National Army (LNA).
The Benghazi government did not specify how long the oilfields could be closed.
Two engineers at Messla and Abu Attifel told Reuters on Monday that production was continuing and that no orders to halt output had been received.
Power Struggle
Libyan factions are locked in a power struggle over control of the central bank and the country's oil revenue.
The latest round of tensions emerged after political factions attempted to oust the head of the Central Bank of Libya (CBL), Sadiq al-Kabir, with rival armed factions mobilising on each side.
The Tripoli-based CBL said on Monday that it suspended its services at home and abroad "due to exceptional disturbance".
The central bank is the only internationally recognised depository for Libyan oil revenue, which provides vital economic income for the country.
"The Central Bank of Libya hopes that its ongoing efforts in cooperation with all relevant authorities will allow it to resume its normal activity without further delay," it said in a statement.
It temporarily shut down all operations last week after a senior bank official was kidnapped but resumed operations the next day after the official was released.
Libya is a major oil producer with little stability since a 2011 NATO-backed uprising. It split in 2014 with eastern and western factions that eventually drew Russian and Turkish backing.
The NOC declared force majeure earlier this month due to protests at Sharara, one of the country's largest oilfields in Libya's southwest, with a capacity of 300,000 bpd.
Libya's oil production before Sharara's closure stood at about 1.2 million bpd.
If production is halted in the east, El Feel in southwestern Libya, with a capacity of 130,000 bpd, would be the only functioning oilfield.
(Reuters)
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