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Libya Threatens Force Majeure as Oil Guards Shut Fields
Libya’s National Oil Corporation is threatening to declare force majeure after members of the security force assigned to protect the country’s oil infrastructure shut a pipeline valve and halted production at two fields.
Production has stopped completely at the Hamada and Tahara oilfields and at a pumping station after members of the Petroleum Facilities Guard closed a valve on the main Hamada-Zawiya crude pipeline, NOC said Tuesday.
The shutdown could spread.
The Petroleum Facilities Guard said it would impose partial production cuts for one week at several additional fields, including Wafa, Al-Khamsa and El Feel. A full shutdown would follow if its demands are not met.
The Guard wants to be transferred financially and administratively from Libya’s defense ministry to the National Oil Corporation and has called for a timetable to complete the move.
NOC said it could declare force majeure if the closed valve is not reopened or if similar shutdowns hit other oilfields.
Libya has been here before. Political groups, armed factions and workers have repeatedly used oilfields, pipelines and terminals as leverage since the 2011 uprising that toppled Muammar Gaddafi.
The latest disruption lands just as Libya is trying to push production much higher.
Output has climbed to roughly 1.4 million barrels per day, its highest level in more than a decade. NOC is targeting 1.6 million bpd by the end of 2026 and 2 million bpd by the early 2030s.
Getting there could require $36 billion to $40 billion in foreign investment, according to NOC Chairman Masoud Suleman.
International companies have already started moving back in. Libya signed exploration and production-sharing agreements this year with Repsol, Turkish Petroleum, Eni, QatarEnergy and MOL following its first major licensing round in 17 years. BP, Shell, Exxon and Chevron have also been pursuing a return.
NOC received a $2 billion allocation under Libya’s 2026 budget to support its production plans.
The problem is much older than the investment push: fields capable of producing more oil are still vulnerable to whoever controls the valve.
By Julianne Geiger for Oilprice.com
