Libya's Sharara Oilfield Hit by Armed Group Blockade, Production Slumps

The Sharara oilfield in Libya has suffered a significant production hit due to an armed group's blockade of its pipeline. The field, operated by Akakus Oil Operations, is one of the largest in the country and produces around 340,000 barrels per day (bpd) of crude oil. However, following the closure of Valve n.7 on the pipeline by an armed military group, production at Sharara has plummeted to about 120,000 bpd.

The Libyan National Oil Corporation (NOC) warned that continued closure of the valve would lead to a halt in production, transportation, and export operations at the field. This, in turn, could result in a declaration of force majeure on Sharara output and exports, which would have significant economic implications for Libya.

The NOC stated that the shutdown would 'directly harm the national economy by reducing state revenues, especially given rising global oil prices.' The group also warned that it may expose the oil transport system and its facilities to technical and operational risks.