Libya’s internationally recognized government has accused its rival government in the east of engaging in “political blackmail” following protests that have led to operational restrictions at the country’s largest oil field, Sharara.
The government claimed that the output reduction at the field was due to extortion but did not provide further details.
According to Reuters, protesters at the Sharara field forced personnel to begin winding down production. Two unnamed engineers at the field confirmed this information. Sharara has a production capacity of 300,000 barrels per day (bpd).
Bloomberg later reported that production at the field had decreased by approximately 50,000 barrels daily to 210,000 bpd due to the protests. Unnamed sources indicated that employees were ordered to start reducing production.
The Sharara field is frequently targeted by warring political and military factions in Libya, a country with the largest oil reserves in Africa. However, Libya faces challenges in fully exploiting these reserves due to its complicated political situation.
The most recent shutdown at Sharara occurred in January, also caused by protesters. They demanded greater government involvement in regional affairs, including job creation and increased investment in the regional economy.
Libya’s oil production has averaged around 1.2 million barrels daily over the past few years, recovering from a low of 100,000 bpd after the regime change. Before the change, Libya produced 1.8 million barrels daily.
Earlier this year, the head of the National Oil Corporation announced plans to increase total production to 1.5 million barrels daily by 2025 and further expand it to 2 million bpd by 2027. However, ongoing disruptions like the current output cuts at Sharara suggest that achieving these goals will be challenging without significant changes in the country’s political environment.