Libya's crude oil production has dropped dramatically, what is the cause?

On August 30, Libya's National Oil Corporation (NOC) said that the country's total crude oil production decreased by about 63%, as the conflict between rival factions in the East and West remained complicated.

Sản lượng dầu thô của Libya giảm sốc, đâu là nguyên nhân?

The closure of a series of oil fields is the reason for the sharp decline in Libya's crude oil production. (Source: Reuters)

According to Reuters news agency, in a statement, the group said that the closure of a series of oil fields was the cause of a sharp decline in Libya's crude oil production and led to the deterioration of oil infrastructure as well as greatly affecting the country's efforts to increase production.

Stressing that the oil industry is the backbone of the national economy, the NOC also warned that restarting idled oil fields would require huge costs.

According to NOC, the reason for the closure of the oil fields is not related to the group. Currently, NOC expert teams are assessing the damage caused by the blockade of the oil fields.

In early August, Chairman of the Libyan Presidential Council Mohammed Al-Menfi and the internationally recognized Government of National Unity (GNU) based in the capital Tripoli dismissed Governor of the Central Bank of Libya (CBL) Sadiq Al-KabirKabir.

The move was rejected by rival forces, the eastern-based Libyan House of Representatives and General Khalifa Haftar's Libyan National Army.

Following the dismissal, the eastern government announced the closure of all Libyan oil production and exports. Libyan House of Representatives Speaker Aqila Saleh stated that the blockade on the oil and gas industry will continue until CBL Governor Sadiq Al-Kabir, who was fired by the Libyan Presidential Council, is reinstated.

Mr. Saleh stressed that the closure of the oil fields was a measure to "protect the assets of the Libyan people from exploitation and theft, as well as protect national resources."

The head of the CBL plays a key role in managing, controlling and distributing oil revenues to Libya’s rival factions. The crisis over control of the CBL threatens to plunge the North African country into new instability.

Libya, one of the top oil producers in the Organization of the Petroleum Exporting Countries (OPEC), is divided between the government in the east and the GNU in the west. In July 2024, the country recorded an output of about 1.18 million barrels per day.

Source: https://baoquocte.vn/san-luong-dau-tho-cua-libya-giam-soc-dau-la-nguyen-nhan-284517.html