Full Breakdown
Major Pipeline Valve Closure Halts Output at Libya’s El Sharara Field
By Drooid · · How we work
Core Event
Late Monday an unnamed armed group closed a valve on the crude-oil pipeline that carries production from the El Sharara field—Libya’s largest oil field—to the export terminal at Zawiya. The shutdown stopped flow through the line that runs roughly 700 km south of Tripoli, prompting the National Oil Corporation (NOC) to warn of an imminent halt to production and transport from the field.
Background and Context
El Sharara, operated by a joint venture of the NOC with Spain’s Repsol, France’s TotalEnergies, Austria’s OMV and Norway’s Equinor, normally yields about 350,000 bpd, roughly one-third of Libya’s total output. Since the 2011 overthrow of Muammar Gaddafi, Libya’s oil infrastructure has repeatedly been targeted by armed groups and protesters seeking political or economic concessions. The country remains split between the UN-recognised government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and an eastern administration backed by General Khalifa Haftar.
Impact on Production and Economy
Engineers at the field reported that the valve closure has cut output by roughly 200,000 bpd, leaving current production at an estimated 100,000–105,000 bpd. This reduction threatens state revenues at a time when global oil prices have risen above $100 a barrel. The NOC cautioned that continued disruption could force the company to invoke force majeure, a legal provision it previously invoked for El Sharara in January 2024. The corporation also warned that the Zawiya refinery, located about 45 km west of Tripoli, could be forced to shut if the pipeline remains blocked.
Official Statements & Responses
In a statement, the NOC said the valve closure caused a pressure buildup in the pipeline, directly lowering output from El Sharara. The corporation appealed to the Petroleum Facilities Guard (Southwest), which secures Libya’s petroleum assets, to intervene and restore access to the affected valves. It also called on the armed group to reopen the line immediately and urged authorities to provide enhanced security for oil sites.
Potential Future Risks
If the valve remains closed, the NOC may formally declare force majeure, suspending contractual obligations to international buyers and further straining Libya’s fragile economy. Continued insecurity around oil infrastructure could also jeopardize the newly signed production-sharing agreements with foreign investors, undermining efforts to return Libya’s oil sector to pre-war levels.
