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Libya’s Political Crisis Endangers Oil Production

by Krystal

The situation in Libya has sharply worsened over the past two months, and could deteriorate further without an agreement on a unified government, according to Stephanie Khoury, the UN’s special envoy for Libya. Khoury made these remarks during a recent Security Council meeting.

Khoury noted that recent unilateral actions by Libyan political, military, and security figures have heightened tensions, deepened political and institutional divides, and hindered efforts to reach a negotiated solution. These comments were reported by the Daily Mail.

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The increasing tension has led to another declaration of force majeure at Libya’s largest oil field, Sharara. This field, which can produce up to 300,000 barrels of crude oil per day, has halted production due to local protests driven by the country’s economic crisis.

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The internationally recognized government in Tripoli has accused its rival government in Eastern Libya of instigating the protests as a form of blackmail.

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Khoury warned that without renewed political dialogue leading to a unified government and elections, Libya faces growing financial and security instability. The country could see deeper political and territorial divisions, along with increased domestic and regional unrest.

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The political instability is complicating Libya’s plans to increase oil production. The National Oil Corporation aims to boost output from around 1 million barrels per day to 1.5 million barrels by 2025, with a further increase to 2 million barrels by 2027. However, ongoing conflict and economic hardship pose significant risks to these goals. The country’s major export revenue source remains under threat as various groups use oil fields as leverage in disputes.

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