Libya Oil Output Halted Amid Security Concerns Over Agency Transfer

Libya's National Oil Corporation (NOC) is considering declaring force majeure after operations at two oilfields and a pumping station were halted due to security concerns. The NOC stated that production had completely stopped at the Hamada and Tahara fields, as well as a pumping station, following the closure of the main Hamada-Zawiya crude-loading pipeline by security personnel.

The Petroleum Facilities Guard, which provides security for Libya's oil fields, pipelines, and terminals, demanded that their agency be transferred under the NOC's financial and administrative control. The Guard threatened to implement a partial production cut at several fields, including Wafa, Al-Khamsa, and El Feel, unless their demands were met.

The NOC warned that shutting down oil fields and halting production operations would be a devastating blow to the national economy, as oil production represents approximately 90% of Libya's economy. The company stated that it may declare force majeure if the valve remains closed or if other fields are subjected to similar forced shutdowns.