Libya has started shutting down its oil fields, raising alarms about the potential collapse of its economy. Authorities in eastern Libya, an OPEC member, announced on Monday, August 26, that they would cease all oil exports and production, leading to a significant decrease in the country’s oil output.
The El-Feel oil field in southwest Libya has already halted production, with local operators signaling a gradual shutdown across the nation. Libya, which has the largest oil reserves in Africa, has been producing about 1.2 million barrels of crude oil per day. The country’s oil sector has been a key battleground in the ongoing conflict between rival eastern and western governments, which have been at odds since the toppling of Moammar Al Qaddafi in 2011.
The recent decision to stop oil production followed the removal of the central bank governor by Libya’s internationally recognized government in the west. The move has intensified the political and economic crisis, prompting the United Nations to warn that the country’s economy might be on the brink of collapse.
The UN has called for an urgent meeting of all involved parties to resolve the situation and resume oil production quickly.
Meanwhile, Nigeria, Africa’s largest oil producer, continues to maintain its output. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported an increase in daily crude oil production from 1.25 million barrels in June to 1.61 million barrels in July 2024.
