Libya’s National Oil Company (NOC) declares force majeure on the El-Feel oil field, a key facility with a capacity of 70,000 barrels per day (b/d).
This development comes in a tense climate marked by internal struggles between the government in the East and that in Tripoli over the management of the Central Bank.
This stalemate is weighing heavily on the country’s oil production, which has already fallen since the closure of the infrastructure at the end of August.
The closures, initiated by the eastern authorities, are aimed at challenging the Tripoli government’s attempt to replace the Central Bank governor, Siddiq al-Kabir.
This governance dispute is causing major disruption to oil exports, jeopardizing Libya’s energy stability.
Since the introduction of these restrictions, national production has fallen to around 591,000 b/d, compared with 1.2 million b/d in July.
Impact on oil production and distribution
Internal tensions led to a significant reduction in Libyan production.
The Mesla, Nafoura and Sarir fields, under the control of the Arabian Gulf Oil Company, resumed operations, restoring up to 230,000 b/d.
However, this recovery remains limited and does not compensate for the shutdown of other fields and ports.
The main objective of this resumption is to respond to the fuel shortage which is worsening throughout the country, causing kilometer-long queues in front of service stations.
Refineries in the Mediterranean and north-western Europe, which had favored Libyan light crude, must now turn to other sources of supply.
Adverse weather conditions have also complicated deliveries of refined products, adding to the volatility of the Libyan oil market.
Political stakes and resource control
Libya has remained divided between two rival administrations since the end of the civil war.
This political division is reflected in the energy sector, where each camp uses control of resources as a lever of power.
General Khalifa Haftar, a major player in the east, controls several production sites and directly influences strategic decisions.
In August, one of his sons ordered the closure of the Sharara field, the largest in the country, leading to a declaration of force majeure by the NOC.
The Central Bank, which manages oil revenues, is at the heart of this crisis. The current governor, Siddiq al-Kabir, challenged by the Tripoli government, is leaving the country for fear of armed militias.
This situation complicates the management of financial flows linked to oil exports and prevents the implementation of a coherent energy strategy.
Uncertain outlook for the energy sector
Recent disruptions show that without a resolution to the Central Bank governance dispute, Libya will remain vulnerable to frequent interruptions to its oil production.
Players in the energy sector are keeping a close eye on political developments, as they directly determine the stability of Libyan crude supplies.
Prospects for a lasting solution appear limited as long as the divergent interests of the various factions continue to prevail.
