Libya's Oil Production Plunges Amid Political Standoff

Libya faces a significant disruption in oil production, losing more than half its output as political factions clash over control of the Central Bank of Libya. The standoff has halted operations at major oilfields, potentially leading to weeks of reduced oil supply.

Libya's oil production has plummeted by over 50%, amounting to around 700,000 barrels per day due to a political standoff. Rival factions are at loggerheads over control of the Central Bank of Libya, jeopardizing the country's four-year period of relative peace.

Operations at key oilfields operated by Waha Oil Company, a subsidiary of the National Oil Corporation, have seen significant declines, with production dropping to 150,000 barrels per day from 280,000. Shutdowns have also been reported at the Sharara, Sarir, Abu Attifel, Amal, and Nafoora fields.

Consultancy Rapidan Energy Group estimates that production losses could reach between 900,000 and 1 million barrels per day and extend for several weeks. Eastern factions demand the reinstatement of central bank governor Sadiq al-Kabir, dismissed by Tripoli's Presidency Council, exacerbating a crisis that traces back to the post-Gaddafi era.

(With inputs from agencies.)