Libya Pipeline Closure Sparks Force Majeure Fears Amid Production Decline

Libya's National Oil Corporation (NOC) is facing a crisis after an armed group shut down the Sharara crude oil pipeline, potentially triggering a force majeure declaration. The NOC stated that its technical teams have been unable to access areas around valves 6 and 7 due to the closure.

The continued closure of valve 7 will halt production, transportation, and export operations at the Sharara field, harming Libya's national economy by reducing state revenues. Production has already fallen by approximately 200,000 barrels per day, with current output ranging between 100,000 and 105,000 bpd.

The NOC called on the group to reopen the pipeline immediately and urged authorities to provide security and protection for oil sites. The closure is a significant setback for Libya's efforts to restore oil production to pre-war levels through foreign investment.