Libya Oil Production Halted Amid Wage Dispute at Three Facilities
The National Oil Corporation (NOC) in Libya has halted operations at three oil facilities due to a wage dispute between employees and management. The closure of the main pipeline valve linking Hamada to Zaouïa, in western Libya, triggered a sudden pressure surge and backflow in the pipelines of the Tahara field. NOC described the closure as illegal and warned that it could declare force majeure if the situation does not improve.
The dispute is led by members of the southwest branch of the Petroleum Facilities Guard (PFG), who are demanding better wages, working conditions, and clarification on the institution's financial and administrative oversight. The PFG is a complex entity with both military and administrative roles, which has led to confusion over its authority and responsibilities.
Libya's economy relies heavily on oil production and exports, with oil sales making up the bulk of state revenue. The International Monetary Fund (IMF) notes that economic activity in Libya remains heavily dependent on oil production and exports.