The United Nations Support Mission in Libya (UNSMIL) has expressed concern over the continued closure of the Sharara-Zawiya oil pipeline, warning of its impact on Libya's oil production and revenue. The mission emphasized that oil is Libya's primary source of national income and that prolonged closure will lead to additional losses in production and revenue. This development may also increase the country's need to import fuel, putting new pressure on public finances.
UNSMIL acknowledged the right of workers to peacefully express their legitimate social and economic demands but urged all parties to protect the safety of oil and energy facilities. The mission called on relevant parties to ensure that technical and operational teams can access facilities and conduct necessary maintenance safely. UNSMIL stressed the need to keep oil, energy, and public resources away from political and security conflicts.
The UN mission warned that attacks on Libya's oil and energy infrastructure or actions that could undermine them may form the basis for imposing punitive measures under relevant UN Security Council resolutions, including Resolution 2213 of 2015. UNSMIL urged concerned authorities and security agencies to urgently resolve disputes related to the pipeline closure peacefully.
The closure of the Sharara-Zawiya pipeline continues to affect production at the Sharara field and crude supplies to the Zawiya refinery. Libya's National Oil Corporation (NOC) announced on September 21 that the closure of valve 7 on the pipeline led to increased pressure inside the pipe and reduced production at the Sharara field.
NOC warned that continued closure could lead to production, transportation, and export halt from the Sharara field and potential shutdown of the Zawiya refinery. This may also lead to increased fuel import costs and trigger a force majeure declaration if the disruption persists. On September 25, NOC reported that direct losses from the closure exceeded $75 million as of September 24.
According to NOC, the lost production during four days amounted to approximately 720,000 barrels of crude oil. The daily production losses were 129,085 barrels on September 21, rising to 259,349 barrels the next day, before reaching 235,983 barrels on September 23 and 237,937 barrels on September 24.
The NOC later announced that direct losses had risen to around $95 million, with a cumulative production decline of 942,376 barrels from the Sharara field over five days. One unit of the Zawiya refinery was closed due to the continued halt in crude oil flow.
Key points
- The UN mission urges peaceful resolution to disputes related to the Sharara-Zawiya pipeline closure.
- Closure of the pipeline may lead to increased fuel import costs and affect Libya's public finances.
- The situation highlights the need to protect Libya's oil and energy infrastructure from security and political conflicts.
