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Libya’s eastern-based government threatens oil shutdown

  • : Crude oil, LPG
  • 25/05/29

Libya's Benghazi-based government in the east has threatened to halt the country's oil production, citing recent attacks against state institutions in the capital Tripoli.

The threat came after state-owned NOC's Tripoli headquarters in western Libya was allegedly stormed by an armed group on 28 May and its chairman held against his will.

The eastern government said it may be forced to "declare force majeure on oil fields and ports" or temporarily relocate NOC headquarters.

NOC released a statement denying the building had been stormed and described the incident as a "limited personal dispute".

Libya is politically divided between rival governments in the west and east.

Libya's capital has been in a state of flux since mid-May when units aligned to prime minister Abdelhamid Dbeibeh's internationally-recognised government in Tripoli attempted to dismantle two powerful armed groups.

The ensuing clashes sparked mass protests against Dbeibeh's government, with the rival administration in the east reviving efforts to depose him. This latest threat to shut down output appears to be aimed at putting additional pressure on Dbeibeh.

The Benghazi government is backed by the Haftar family and controls areas in the east and south that contain most of the country's oil production. Eastern-based authorities have instituted several oil blockades over the past decade or so, making the threat credible.

Libya's crude production currently stands at just under 1.4mn b/d. Previous blockades have seen output fall to as low as 100,000 b/d.


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