Libya’s crude oil production has rebounded to 1.3 million barrels per day (bpd), according to the National Oil Corporation (NOC). This resurgence follows the resolution of a political dispute surrounding the appointment of a new governor to the Central Bank of Libya.
The NOC stated, “Efforts are still ongoing to increase production levels,” indicating a commitment to further bolster output in the future.
Crude production at many Libyan oilfields was halted for more than a month, beginning in late August, due to tensions between the country’s eastern and western administrations regarding the central bank’s leadership. The central bank is pivotal, as it is the destination for revenues generated from oil exports. Both the internationally recognized Government of National Unity and the rival eastern administration sought to place an ally in the governor’s position.
The eastern government, based in Benghazi and led by the Libyan National Army under Khalifa Haftar, warned it would cease all oil production if the Tripoli government appointed its own candidate for the central bank’s head. The eastern administration declared a “force majeure” that would impact all oilfields, facilities, and export terminals, effectively halting operations amid escalating tensions.
However, at the end of September, rival factions reached a breakthrough during UN-mediated discussions, agreeing on the leadership of the central bank. This agreement paved the way for the restoration of oil production and exports.
Production resumed fully in early October, gradually increasing from 1 million bpd to 1.2 million bpd, ultimately returning to the pre-dispute level of 1.3 million bpd. Notably, the El Sharara field, the country’s largest, is currently producing approximately 240,000 bpd.
Despite this recovery, Libya’s oil fields and export terminals remain susceptible to blockades and shutdowns as political factions leverage them as bargaining tools in ongoing disputes regarding governance in the country.
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