Libya Suspends Operations at Hamada and Tahara Oil Fields on September 15 After Petroleum Facilities Guard Closes Pipeline Valve, Threatens Broader Production Halt

Libya's National Oil Corporation suspended operations at the Hamada and Tahara oil fields and a pumping station on September 15 after members of the Petroleum Facilities Guard closed a valve on the main Hamada-Zawiya crude-loading pipeline, according to Arab News and The Media Line. The NOC said it may declare force majeure if the valve remains closed or if other fields are subjected to similar forced shutdowns, warning the move constitutes a devastating blow to the national economy as the world witnesses a rise in crude oil prices. The Petroleum Facilities Guard, currently under the Defense Ministry, is demanding transfer to the NOC both financially and administratively. The dispute comes at a particularly sensitive moment for global oil markets, with traders already contending with Saudi Arabia's East-West pipeline closure and ongoing Strait of Hormuz disruptions. Petroleum accounts for approximately 90 percent of Libya's economy, making interruptions to production particularly consequential for government revenue. The country's oil sector has endured repeated shutdowns stemming from political and technical disputes since the 2011 uprising against Muammar Gaddafi. The threatened broader production halt adds another layer of supply risk to a market already pricing in structural disruptions across the Middle East. Libya's Hamada and Tahara fields contribute meaningfully to Mediterranean crude supply, and buyers have historically turned to US and North Sea alternatives when Libyan barrels become unavailable, putting upward pressure on those benchmarks as well.