Libya Oil Corporation Weighs Force Majeure After Pipeline Shutdown

The National Oil Corporation of Libya is considering a declaration of force majeure after the Petroleum Facilities Guard shut a valve on the main Hamada-Zawiya crude pipeline. The closure caused a pressure surge at the Tahara field connection point, resulting in a complete halt of production at the Hamada and Tahara oilfields and pumping station NC5.

The Petroleum Facilities Guard, which currently operates under the Ministry of Defence of Libya, is demanding a financial and administrative transfer to the National Oil Corporation. To pressure the government, the Guard has already implemented partial production cuts for one week at the Wafa, Al-Khamsa, and El Feel fields and has threatened a full shutdown if its requirements are not met.

The National Oil Corporation characterized the disruption as a "devastating blow to the national economy," noting that the halt occurs during a period of rising global crude oil prices. The disruption threatens Libya's ability to meet financial obligations and its goal of increasing production to 1.6 million barrels per day by the end of 2026.