Armed group shuts pipeline from Libya's largest oil field, jeopardising exports

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-22T11:04:14.435Z • Permanent link

Libyan rebels from the Eastern Army group have taken control of the El Sharara oil field, home to a vital pipeline that supplies the country's largest oil field, Zawiya. The Eastern Army, a faction affiliated with the internationally recognized government of Libya, seized control of the pipeline on September 19, 2023, prompting the national oil company, National Oil Corporation (NOC), to declare a force majeure on production. NOC CEO Mustapha Sadiq warned that the closure would lead to a significant reduction in Libya's oil exports, which are crucial to the country's economy.

The crisis began on September 18, 2023, when the Eastern Army, also known as the Libyan National Army (LNA), launched a military operation against the rival Western Army, which has been fighting to control the city of Sirte. The LNA's forces reportedly took control of the El Sharara field, which is operated by the NOC and produces around 300,000 barrels of oil per day. The field is a critical component of Libya's oil infrastructure, accounting for roughly a third of the country's total output. The pipeline, which carries oil from the El Sharara field to the Zawiya field, was also seized by the LNA.

The crisis highlights the ongoing instability in Libya, which has been plagued by civil war and factional violence since the overthrow of Muammar Gaddafi in 2011. The Eastern Army, led by Khalifa Haftar, has been seeking to consolidate power in the country, while the Western Army, led by General Khalid al-Mashall, has been fighting to maintain control of the capital city, Tripoli. The conflict has had significant implications for the global energy market, with oil prices rising in response to the uncertainty surrounding Libya's oil production.

The closure of the El Sharara pipeline has significant implications for the global energy market, particularly for countries that rely on Libyan oil exports. The pipeline is a critical component of Libya's oil infrastructure, and its closure will lead to a reduction in the country's oil exports, which will have a ripple effect on the global market. The International Energy Agency (IEA) has warned that the crisis could lead to a shortage of oil in the region, which could drive up prices and have a significant impact on the global economy.

The crisis also has implications for research communities and markets that rely on Libyan oil data. The NOC is a key player in the global energy market, and its data is highly valued by researchers and analysts. The closure of the pipeline will lead to a reduction in the NOC's ability to provide data on Libya's oil production, which will have a significant impact on the research community. The crisis also has implications for markets that rely on Libyan oil exports, such as the London Stock Exchange, which has a significant presence of Libyan oil companies.

The crisis in Libya is part of a larger pattern of instability in the region. The Middle East has been plagued by civil war and factional violence since the Arab Spring protests in 2011, which led to the overthrow of several authoritarian regimes. The region has also seen a significant increase in terrorism and extremism, which has had a significant impact on the global energy market. The crisis in Libya is also part of a broader trend of instability in the North African region, which has seen a significant increase in migration and conflict in recent years.