Libya’ largest oil field halts production over alleged “political stunt”

Libya’s largest oil field, Sharara, halted production Monday after a gradual output reduction over the weekend, according to Bloomberg. Sharara's output fell from nearly 270,000 bpd on Saturday to zero, following employee orders to reduce production.

The reason for the shutdown is unclear, though Libya’s internationally recognized government described it as “political blackmail.” Libya remains divided between rival administrations in Tripoli and the east.

This shutdown highlights the ongoing security issues disrupting Libya's energy sector. Local media reported that Sharara’s halt was prompted by protests over socioeconomic conditions. Earlier this year the field suspended operations for a week following demonstrations. The Wafa field and a gas link to Italy also experienced brief halts in February because of protests.

Libya’s oil production has been unstable since the 2011 civil war, dropping from 1.8 MMbpd in 2008 to about 100,000 bpd post-conflict. Recently, output stabilized around 1.2 MMbpd. Sharara is a joint venture involving Libya's National Oil Corp., TotalEnergies, Repsol, OMV, and Equinor.