September 02, 2024 [Oilprice]- Libya’s crude oil production slumped by 700,000 barrels daily as of Thursday as the eastern government of the country began to shut down oil fields in an escalation of the internal political fighting that Libya has been locked in since 2011.
The current production rate in the country is below 600,000 bpd at the moment, Reuters reported, citing Libya’s National Oil Corporation. Last month’s daily average stood at 1.18 million barrels daily, the report noted.
Per information from petroleum engineers working in Libya’s oil patch, fields including Sharara and El Feel have been shut down and the production rate of Waha Oil Company, a NOC subsidiary, has declined to 150,000 bpd from 280,000 bpd. Exports from all of Libya’s oil ports have been suspended as well. The last loadings, on Thursday, totaled 600,000 barrels, Reuters also said.
Libya was plunged into a deeper political crisis earlier this month over a row about the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.
The Benghazi-based government in eastern Libya, which is a rival to the Tripoli-based government in the politically divided North African OPEC producer, said on Monday it would shut down all crude oil output and exports.
The east-based government backed by military leader Khalifa Haftar is not internationally recognized, but Haftar and his people control most of the country’s oilfields.
Over the past weeks, the situation in Libya has deteriorated with the east-west rivalry flaring up again and centered on the leadership of the Central Bank of Libya—the guardian of Libya’s wealth and income from oil exports. The Tripoli government wants to appoint a new governor while the Benghazi government wants the incumbent to remain in office.
Oil prices ticked higher earlier this week thanks to the supply disruption in Libya and it may yet contribute to a weekly gain.
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