Libya's east-based government will close all oilfields

The Libyan government in the east said Monday that all oilfields were closing, stopping production and exports. However, Tripoli's National Oil Corp., which controls Libya's oil resources, did not confirm this.

Libyan factions have been locked in a struggle for control over the central bank and its oil revenues.

Khalifa haftar, the eastern Libyan military commander, controls most of the oilfields in Benghazi.

Libya, the largest oil producer in the Mediterranean region, has experienced little stability since an uprising supported by NATO in 2011. In 2014, the country was split between eastern and western factions that fought each other. This eventually led to Russian and Turkish support.

Tensions are on the rise again

After political factions tried to remove the head of the Central Bank of Libya, Sadiq Al-Kabir (CBL), rival armed groups mobilized on both sides.

The only international depository of Libyan oil revenue is the central bank. This income is vital for a nation torn apart by war for years.

The Eastern-based government has not specified how long oilfields can be closed.

The Libyan National Army, led by Haftar, controls the eastern part of Libya where the parliament is located. Prime Minister Abdulhamid Dbeibeh, the internationally recognized government based in Tripoli, leads the internationally recognised government.

Due to protests, the NOC declared force majeure in early August at Sharara, one of Libya's largest oilfields with a capacity of 300,000. barrels per day.

(source: Reuters)