Libya’s National Oil Corporation announced that recent oilfield closures have slashed the country’s oil production by about 63%. The shutdowns are linked to ongoing conflicts between rival eastern and western factions.
The oil blockade in Libya has intensified, with eastern leaders demanding the western authorities reverse the decision to replace the central bank governor. Control over oil revenue is a major point of contention among the factions.
The dispute over the Central Bank of Libya is raising concerns about further instability in the oil-rich country, which is divided between eastern and western factions supported by Turkey and Russia.
The NOC emphasized that restoring the halted oilfields will be costly and require significant technical efforts, highlighting that the closures are not due to their operations. The company is evaluating the financial impact of the shutdowns.
The repeated oilfield closures have significantly harmed Libya’s oil sector, deteriorating infrastructure and undermining production efforts. Eastern factions insist that the oil output will remain halted until the central bank governor is reinstated.
