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Armed group blockade cuts Libya's Sharara oilfield output to 120,000 bpd

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Armed group blockade cuts Libya's Sharara oilfield output to 120,000 bpd

This digest was compiled by AI from multiple sources — links to the originals are below.

An armed group closed a valve on the pipeline from Libya's Sharara oilfield to Zawiya port, cutting crude output from about 340,000 bpd to 120,000 bpd. Libya's National Oil Corporation warned the closure could halt all production and exports from the field. The disruption adds to global supply concerns amid ongoing Middle East outages.

Key Facts

  • An armed group closed Valve No. 7 on the pipeline from Sharara to Zawiya port, causing a pressure buildup and significant production cut.
  • Sharara output fell from about 340,000 bpd to 120,000 bpd after the valve closure.
  • Libya's National Oil Corporation said continued closure will inevitably halt production, transportation, and export operations at Sharara.
  • NOC may declare force majeure on Sharara output and exports if the shutdown continues.
  • The disruption comes as Saudi Arabia's Yanbu exports remain offline following a September 10 drone attack on the East-West pipeline.

Sharara Production Cut

An armed military group closed Valve No. 7 on the pipeline carrying crude from Sharara to Zawiya port for exports. The closure caused a pressure buildup within the pipeline and led to a significant reduction in production at the Sharara field. Sharara, operated by Akakus Oil Operations, produced about 340,000 bpd before the incident. Output has now slumped to about 120,000 bpd, according to various estimates.

NOC Warning

Libya's National Oil Corporation warned that continued closure of Valve No. 7 will inevitably halt production, transportation, and export operations at Sharara. NOC said it may be compelled to declare force majeure on Sharara output and exports if the shutdown continues. The company said this would directly harm the national economy by reducing state revenues, especially given rising global oil prices. NOC also said the shutdown would expose the oil transport system and its facilities to technical and operational risks.

Global Supply Context

The Libyan disruption adds to squeezed global oil supply as shipments through the Strait of Hormuz remain uneven and uncertain. Saudi Arabia's Yanbu exports from the Red Sea coast are still offline following the September 10 drone attack on the East-West pipeline. Oil prices rose in Asian trade on Tuesday, following two days of declines, as the market weighed diplomacy hopes against supply-side risks.

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