Bloomberg reported that Libya’s biggest oil field – Sharara – halted production on Monday after the operator was forced to gradually cut output over the weekend, adding that oil prices rebounded following the news, with Brent crude paring an earlier loss to trade 0.72% lower at $76.26 a barrel as of Monday evening in London.
Citing two people familiar with the operations, Bloomberg said output at Sharara in southern Libya had stopped completely, down from nearly 270,0000 barrels on Saturday when employees received orders to trim output.
It wasn’t immediately clear what prompted the decision to curtail output. Libya’s internationally recognized Government of National Unity on Sunday said shutting the project was “political blackmail.”
Bloomberg said the shutdown was the latest example of the security problems that had disrupted energy infrastructure for years.
“Sharara had a force majeure, a clause in contracts allowing deliveries to be suspended, lasting several weeks in January following demonstrations. The smaller Wafa field in western Libya and a natural gas link to Italy also had a brief halt in February following protests.” The report reads.
Meanwhile, exclusive sources told Libya Al-Ahrar TV Saturday that Saddam Haftar gave orders to close Sharara oil field – operated by Spain’s Repsol – after he was told by Italy (when returning to Benghazi from Rome) that he had been implicated in an arrest warrant issued by Spain.
The sources added that the warrant was for Saddam Haftar’s role in smuggling a shipment of weapons that Spain intercepted months ago.
They have also told Al-Ahrar that local and Western figures are pressing Spain to remove the arrest warrant of Saddam Haftar so that he can order a resumption of oil operations at Sharara oil field.
Sharara is a joint venture between Libya’s state oil firm National Oil Corporation, France’s TotalEnergies SE, Spain’s Repsol SA, Austria’s OMV AG and Norway’s Equinor ASA.
