Libya's Oil Industry on Brink of Collapse as Pipeline Valve Closed
Libya's oil industry is facing a new crisis after security forces closed a valve on the main Hamada-Zawiya crude-loading pipeline, suspending operations at several Libyan oilfields. The National Oil Corporation (NOC) announced this development on Tuesday and warned that it might declare force majeure if the situation remains unchanged.
The NOC also stated that this could lead to complete shutdowns at other oil fields. Libyan oil production has experienced frequent closures due to political and technical reasons since the 2011 uprising against Muammar Gaddafi, according to Reuters. The Petroleum Facilities Guard, responsible for oil field security, demanded to be placed under the NOC's financial and administrative control.
The Guard set a deadline for the prime ministry and the NOC to expedite these transitions, threatening a full production halt unless their demands were met. This situation has heightened concerns about Libya's economy, given the significance of its oil industry and the current rise in global oil prices.