Two oil fields in southeastern Libya suspend production, impacting oil production and export

According to news on August 27, two oil fields in southeastern Libya have stopped production, and another oil field has reduced production to the minimum level.

Usama Hamad, the prime minister appointed by the Libyan House of Representatives, issued a statement on the social media account of his government on the 26th, announcing that all oil fields and ports under the control of his government have encountered force majeure and suspended oil production and export. This decision was made after the Libyan Presidential Council, which controls the west, announced the replacement of the governor of the Central Bank of Libya.

Libya is a major oil producer in the Mediterranean region and has Africa's largest crude oil reserves. Since the anti-Gaddafi regime protests broke out in Libya in 2011, the country's political situation has been in turmoil. In 2014, it split into warring eastern and western factions. Energy resources have become a key battlefield for various factions to compete for political advantages.

The eastern government's move this time aims to respond to the western government's attempt to take over the Central Bank of Libya. Although the eastern government of Libya is not recognized by the international community, most of the oil fields are under the control of its military leader Khalifa Haftar. The western government is headquartered in Tripoli and is led by interim prime minister Abdul Hamid Dbeibeh. It was elected in 2021 through a United Nations-backed process.

The United Nations has warned that this crisis could lead to the collapse of Libya's economy. International oil prices have also risen sharply due to Libya's suspension of oil exports. The western government said it will convene all parties to hold an emergency meeting to resolve the crisis and urge the immediate resumption of oil production. At the same time, it is also preparing to take over the central bank. The authorities in Tripoli are urging the eastern government to rejoin the United Nations-mediated agreement and strive to hold the long-delayed national elections before February 17 next year. At present, all parties are paying attention to the development of the situation and how to resolve this oil production and export crisis caused by political disputes.