Libya's oil output has fallen at two western fields after a pipeline valve was shut. The head of the National Oil Corporation (NOC) told Reuters on Thursday that a valve on the pipeline from the Hamada and Tahara oilfields to Zawiya port had been closed, leading to a reduction in production at both fields.

Source: Reuters via Devdiscourse

In a statement, NOC said individuals entered the crude oil receiving station near the Zawiya refinery and closed the pipeline valve. The pipeline belongs to the Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, the statement said. NOC did not, in the reporting so far, name the individuals or give a motive.

"The continuation of this shutdown will lead to the loss of volumes of crude oil production, which will negatively impact production rates," NOC said in its statement. It urged the relevant authorities "to intervene immediately to reopen the valve and secure the site" so technical operations can resume.

The fields at a glance

Hamada and Tahara lie in the Ghadames basin in northwestern Libya. Under stable conditions Hamada produces about 50,000 barrels a day, NOC has said; Tahara reopened in 2022 at 2,500 barrels a day with an expectation of reaching 40,000. Libya's total output remains around 1.4 million barrels a day.

Yaani: 1.4 million barrels a day is 14 lakh barrels daily — and oil accounts for about 90% of Libya's state revenues, Reuters reported, which is why even a single valve closure matters far beyond the two fields.

1.4 millionbarrels a day — Libya's total oil output, Reuters reported
~90%share of state revenues coming from oil
50,000barrels a day from Hamada under stable conditions, NOC

Libyan output has been hit by repeated closures for political and technical reasons since the 2011 uprising against Muammar Gaddafi. In September, an armed group closed a valve on the Sharara crude pipeline to Zawiya, sharply reducing output at that field, one of Libya's largest, Reuters reported.

The Libya disruption landed in an already tight market. Brent crude was little changed early on Friday at $112.96 a barrel, after rising 4% on Thursday to its highest settlement since May 4 amid concern over Houthi attacks on Saudi Arabia, the world's top crude exporter, Reuters reported.

Source: Reuters via SRN News

What is solid

  • NOC said individuals entered a crude receiving station near Zawiya refinery and closed the pipeline valve
  • The closure reduced production at both the Hamada and Tahara fields, the NOC chief told Reuters
  • NOC urged authorities to intervene immediately to reopen the valve and secure the site

What is only claimed

  • Who the individuals who closed the valve were and why — NOC's statement, as reported, did not name them or give a motive
  • How long the shutdown will last and the exact volume of production lost — not yet quantified in the reporting