Libya's Oil Crisis Deepens Amid Political Turmoil

Libya's oil production has plummeted by 63% due to oilfield closures caused by the ongoing conflict between eastern and western factions. Eastern leaders demand that western authorities step back over replacing the central bank governor. The crisis threatens further instability in the oil-rich nation.

Libya's National Oil Corporation (NOC) announced on Friday that recent oilfield closures have led to a staggering 63% decrease in the country's total oil production, as the conflict between rival eastern and western factions escalates.

The blockade in the North African nation's oil sector has intensified, with eastern leaders insisting that western authorities cease their efforts to replace the central bank governor, a pivotal role in a state where control over oil revenue is highly contested. The ongoing crisis over control of Libya's Central Bank could spark new waves of instability in a major oil-producing country already divided between factions supported by Turkey and Russia.

Emphasizing the oil sector's critical role in the Libyan economy, the NOC stated that restarting the halted oilfields will involve significant costs and increased technical efforts. The corporation stressed that the reasons for the oil closures are unrelated to its operations and noted that its teams are currently assessing the resultant losses.

The NOC further highlighted that repeated shutdowns have severely impacted the nation's oil production, damaged infrastructure, and undermined efforts to boost output. Eastern factions have pledged to keep oil production stalled until the internationally recognised Presidency Council and the Government of National Unity in Tripoli reinstate central bank governor Sadiq al-Kabir, who was dismissed earlier this month by Presidency Council chief Mohammed al-Menfi. This move was rejected by the eastern-based House of Representatives parliament and the eastern commander Khalifa Haftar's Libyan National Army.

(With inputs from agencies.)