Libya oil output falls after armed group shuts Al-Sharara pipeline valve

Oil production at Libya’s Al-Sharara field has fallen after an unnamed armed group shut a valve on a pipeline connected to the site, according to the National Oil Corporation.

The NOC said the closure caused pressure to build in the crude oil pipeline linking Al-Sharara to the coastal city of Zawiya. The pressure buildup significantly reduced output from the field, although the corporation did not provide a figure for the decline.

The incident took place late Monday, but the NOC did not identify the group responsible or state how long the shutdown had lasted.

Refinery and revenue risks

The corporation warned that the consequences could widen if the disruption continues. It said the Zawiya refinery could be forced to shut down and that the company could be “compelled to declare force majeure” if the pipeline closure is not resolved.

The NOC also said such a scenario would directly reduce state revenues. The warning comes as global oil prices were rising, according to the corporation.

The Zawiya refinery is located about 45 kilometres west of Tripoli. The Al-Sharara field, one of Libya’s key sources of crude, lies roughly 900 kilometres south of the capital.

Oil infrastructure remains vulnerable

Libya is a member of OPEC and holds Africa’s largest proven oil reserves. However, oil fields, pipelines and export terminals have frequently been targeted by armed groups and protesters seeking to advance political or economic demands.

The country has faced violence and instability since the overthrow of Muammar Gaddafi in 2011. Libya remains divided between a UN-recognised government in Tripoli led by Prime Minister Abdulhamid Dbeibah and a rival administration in the east backed by Khalifa Haftar.

The latest disruption adds to the operational risks facing Libya’s oil sector. The NOC has not said whether the valve has been reopened, whether force majeure has been declared or whether the Zawiya refinery has stopped operating.