Libyan oilfields shut down in dispute over central bank
Two field engineers reported that the Sarir oilfield had almost completely stopped production on Wednesday, due to a dispute between the government and the central bank over oil revenues.
The authorities in the east of Libya, where the majority of oilfields are located, announced on Monday that production and exports will be stopped.
The engineers stated that Sarir produced about 209,000 barrels of oil per day before production was reduced.
The 300,000 barrels per day Sharara oilfield had already declared force majeure, and disruptions were reported this week at El Feel and Amal.
Libya, a member of OPEC, produced about 1,18 million barrels per day in July.
After the Tripoli Presidency Council dismissed Central Bank of Libya (CBL), chief Sadiq Al-Kabir and prompted rival armed groups to mobilize, the move to cut off Libya's major source of revenue was taken.
Abdulhamid al-Dbeibah is the Prime Minister of Libya, and he was appointed by a U.N.-backed procedure in 2021. He heads the Government of National Unity based in Tripoli. This week, he said that oilfields shouldn't be closed "under false pretexts".
The U.S. Africa Command's General Michael Langley, and the Charge d'Affaires Jeremy Berndt, met Khalifa Hastar on Tuesday. He is the leader of the Libyan National Army, which controls the east and south of the country.
The U.S. Embassy for Libya posted on the social media platform X that "the United States encourages all Libyan stakeholder to engage in constructive dialogue", with the support of the United Nations Support Mission and the international community.
Benchmark Brent oil price fell 1.2% at $78.35 a barrel by 1039 GMT, as fears about Chinese demand and the risks of an economic slowdown were offset by concerns about possible supply losses from Libya.
(source: Reuters)
