Libya’s Largest Oilfield Hit by New Armed Group Blockade
Libya's Sharara oilfield, the country's largest, has seen production fall sharply after an armed group closed Valve No.7 on the pipeline that carries crude to the Zawiya export port, the National Oil Corporation (NOC) said. The valve closure caused pressure to build in the pipeline and has reduced output from roughly 340,000 barrels per day (bpd) to about 120,000 bpd according to estimates.
Why It Matters
The blockade adds to existing disruptions in Middle Eastern supply routes and could force Libya's state oil firm to declare force majeure, potentially reducing state revenues and increasing operational risks for the country's oil system.
Key Facts
- Location: Sharara oilfield, Libya
- Incident: Armed group closed Valve No.7 on pipeline to Zawiya port
- Operator: Akakus Oil Operations
- Pre-incident production: About 340,000 barrels per day
- Post-incident estimate: Around 120,000 barrels per day
Libya's biggest oilfield, Sharara, has suffered a sharp reduction in output after an armed military group closed Valve No.7 on the pipeline that moves crude to the Zawiya export terminal, the country's National Oil Corporation (NOC) reported. The NOC said the closure caused a pressure buildup in the pipeline, forcing operators to cut production.
Sharara is operated by Akakus Oil Operations, and its output is normally transported via the affected pipeline to Zawiya for export. Before the incident the field was estimated to produce about 340,000 barrels per day; following the valve closure, various estimates put current output at roughly 120,000 bpd.
The NOC warned that if the valve remains closed it could be forced to halt production, transportation and export operations at Sharara, and said a continued shutdown might lead to a force majeure declaration covering field output and shipments. The state oil firm also said such a suspension would harm national revenues and expose the oil transport system and facilities to technical and operational risks.
The disruption at Sharara comes amid broader supply concerns in the region, including uneven shipping through the Strait of Hormuz and suspended exports from Saudi Arabia's Yanbu terminal after a September 10 drone strike on the East-West pipeline. Oil prices rose in Asian trading as markets balanced hopes for diplomacy against the accumulating supply-side risks.