Libya’s oil production has come to a halt at several key oilfields following an announcement by the rival government in the east to stop all oil production and exports.
The move, declared on Monday, has thrown OPEC’s African producer into deeper turmoil as it grapples with ongoing political divisions.
According to Reuters, engineers at the El Feel oilfield in southwestern Libya confirmed on Tuesday that crude oil output had ceased.
Production at other oilfields in the east and southeast has also been reduced or halted entirely, with local operators indicating a gradual shutdown across the country.
Libya, which produces approximately 1.2 million barrels per day (bpd), is now facing a significant setback as its oil output dwindles amid a political crisis centered on the leadership of the Central Bank of Libya.
The bank is the sole internationally recognized institution responsible for managing Libya’s oil revenues.
The crisis escalated when the Benghazi-based government in eastern Libya, led by military leader Khalifa Haftar, announced the shutdown of all oil production and exports.
Although this government is not internationally recognized, Haftar’s forces control the majority of Libya’s oilfields, giving them substantial leverage in the conflict.
This latest disruption stems from a deepening rivalry between the eastern and western governments over the leadership of the Central Bank.
The Tripoli-based government, which is recognized internationally, has attempted to replace the bank’s governor, Sadiq Al-Kabir, further fueling tensions between the two factions.
The United Nations Support Mission in Libya (UNSMIL) expressed serious concern over the situation, warning that unilateral actions could lead to severe consequences for the Libyan people and heighten the risk of the country’s financial and economic collapse.
