Libya's NOC Reports $75 Million Loss After Sharara Pipeline Shutdown

Libya's National Oil Corporation (NOC) has reported significant financial and operational damage following the forced shutdown of a key crude pipeline. According to the state oil company, the closure of a valve on the Sharara-Zawiya pipeline by an armed group has resulted in the loss of more than 720,000 barrels of production and over $75 million in direct losses as of September 24.

The disruption began on September 21, when the armed group shut valve 7 on the pipeline that carries crude from the Sharara field to the Zawiya port. The NOC has warned that the Zawiya refinery may soon be forced to begin halting units as its crude reserves dwindle.

The incident underscores the persistent security challenges facing Libya's oil infrastructure, which remains a frequent target of armed groups and local disputes. The Sharara field is one of the country's largest, and the pipeline to Zawiya is a critical artery for both exports and domestic refining.

With the refinery at risk, the shutdown could further strain fuel supplies in western Libya. The NOC's statement did not indicate when the valve might be reopened or whether negotiations with the armed group are underway.