Armed Group Disrupts Libya’s Al-Sharara Oil Pipeline

Libya’s National Oil Corporation said an unnamed armed group shut a valve on a pipeline carrying crude from the Al-Sharara oil field to the coastal city of Zawiya, causing a significant reduction in production.

The closure led to pressure building inside the crude oil pipeline, according to the corporation. The NOC said the disruption could have wider consequences if the shutdown continues.

Warnings over prolonged disruption

The corporation warned that it could be compelled to declare force majeure if the interruption persists. Such a declaration would reflect the impact of circumstances beyond its control on its operations.

The NOC also said a continued disruption could reduce state revenues and force the Zawiya refinery to shut down. It did not say that force majeure had been declared or that the refinery had already closed.

The statement did not identify the armed group involved, specify how much production had been lost or say how long the shutdown had lasted.

Importance of Al-Sharara

Al-Sharara is a key source of crude for Libya. The field is located about 900 kilometres (560 miles) south of Tripoli, while the Zawiya refinery is roughly 45 kilometres (28 miles) west of the capital.

Libya is an OPEC member and holds Africa’s largest proven oil reserves. Oil infrastructure in the country has frequently been targeted by armed groups and protesters seeking to advance political or economic demands.

The latest disruption comes against the backdrop of Libya’s continuing instability since the overthrow of Muammar Gaddafi in 2011. The country remains divided between the UN-recognised government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and a rival administration in the east backed by Khalifa Haftar.