Libya's Oil Strife: Security Forces Valve Shutdown Sparks Economic Alarm

Operations at Libyan oilfields have been halted due to security forces closing a key pipeline valve, threatening further shutdowns. The Petroleum Facilities Guard demands financial and administrative control under the National Oil Corporation, leveraging a partial production cut to press for change. Oil production is Libya's primary economic driver.

Operations were suspended at several Libyan oilfields after security forces closed a valve on the main Hamada-Zawiya crude-loading pipeline, announced the National Oil Corporation (NOC) on Tuesday. The NOC warned it might declare force majeure if the valve remains closed, risking complete shutdowns at other oilfields.

Libyan oil production has faced frequent closures for political and technical reasons since the 2011 uprising against Muammar Gaddafi. Reuters obtained a statement from the Petroleum Facilities Guard, responsible for oil field security, demanding to be placed under the NOC's financial and administrative control.

The Guard urged the prime ministry and the NOC to expedite administrative and financial transitions with a set timeline, threatening a full production halt unless demands were met. Libya's oil industry, crucial to its economy, faces significant risk amid global oil price increases.