Libya’s Eastern Government Shuts Oilfields Amid Central Bank Leadership Dispute

Libya’s eastern-based government has announced the shutdown of all oilfields, terminals, and oil facilities in response to a dispute over the leadership of the Central Bank of Libya. Prime Minister Osama Hammad of the internationally unrecognized eastern government in Benghazi declared a “force majeure” on Monday, citing attacks on the central bank’s leadership and employees as the reason for the closure.
This move escalates the ongoing conflict between the eastern authorities and the internationally recognized Government of National Unity (GNU) based in Tripoli. The Benghazi government, led by military leader Khalifa Haftar, controls most of Libya’s oilfields, but its authority is not internationally recognized.
The eastern government has not provided a timeline for how long the oilfields will remain closed. In response, Abdul Hamid Dbeibah, the Tripoli-based prime minister, criticized the shutdown, suggesting it was based on “flimsy pretexts” and should not be tolerated.
The National Oil Corp (NOC) has not confirmed a complete halt in production, but some subsidiaries, including the Waha Oil Company and Sirte Oil Company, have indicated plans to reduce output. Engineers at key sites like Messla and Abu Attifel reported to Reuters that production was still ongoing and no official orders to cease operations had been received.
The oilfield shutdown is part of a broader power struggle between the eastern and western factions, who have been locked in a dispute over control of the central bank. This ongoing conflict threatens to undermine a UN-brokered peace deal aimed at stabilizing Libya’s fractured governance structure.