Libya’s National Oil Corporation (NOC) has declared force majeure at the Sharara oilfield following protests that halted production at the country’s largest oilfield earlier this week.
The NOC announced the force majeure effective August 7, citing the inability to carry out crude oil loading operations due to the situation at Sharara.
Energy Afrique reports that the Sharara oilfield was previously shut down in January this year by protesters demanding greater government involvement in regional issues, such as job creation and increased investments.
Production at the Sharara oilfield, which can produce over 300,000 barrels per day (bpd), was fully halted on Monday after being reduced over the weekend because of the protests, according to Energy News Africa.
By Saturday, output had already been reduced to around 270,000 bpd as workers began to gradually cut production, following instructions reported by anonymous sources via Bloomberg.
On Monday, Libya’s internationally recognized government accused its rival in the east of engaging in “political blackmail” after the protests led to operational restrictions at Sharara. The government claimed the output reduction was a form of extortion, though it did not provide further details.
Reuters reports that the protesters at the oilfield had compelled personnel to begin winding down production, based on information from two engineers working at the site.
The Sharara oilfield is frequently targeted by Libya’s warring political and military factions. Despite holding the largest oil reserves in Africa, Libya faces significant challenges in fully exploiting these resources due to the country’s complex political landscape.
Earlier this year, the head of the National Oil Corporation outlined plans to increase oil production to 1.5 million barrels daily by 2025, with further expansion to 2 million bpd by 2027. However, the ongoing disruptions at Sharara highlight the difficulties in achieving these goals without a significant change in Libya’s political environment.
