Libya Oil Output at Risk as Guard Shutdown Pipeline Valve

Libya's National Oil Corporation (NOC) is threatening to declare force majeure due to a pipeline valve shutdown at two oil fields by members of the Petroleum Facilities Guard. The Hamada and Tahara oilfields, along with a pumping station, have been completely halted in production after the valve was closed on the main Hamada-Zawiya crude pipeline.

The shutdown is not limited to these fields, as the Petroleum Facilities Guard has announced plans to impose partial production cuts for one week at several additional fields, including Wafa, Al-Khamsa, and El Feel. A full shutdown would follow if their demands are not met, which include being transferred financially and administratively from Libya's defense ministry to the NOC.

NOC warned that it could declare force majeure if the closed valve is not reopened or if similar shutdowns hit other oilfields. The country has a history of using its oil infrastructure as leverage in disputes.

Libya is currently aiming to increase production to 1.6 million barrels per day by the end of 2026 and 2 million bpd by the early 2030s, requiring $36 billion to $40 billion in foreign investment. International companies have already started moving back into the country.