African Country Competing With Nigeria Begins Shutting Down Oil Field
- On Monday, August 26, the authorities in eastern Libya announced that they will cease all exports and output
- Authorities in the OPEC member's east imposed a closure, which caused Libya's oil output to decline, intensifying talks of economic collapse
- At the El-Feel field in southwest Libya, production has ceased, and local operators are indicating a gradual statewide shutdown of pumping
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Oil output in Libya decreased as authorities in the eastern member of OPEC imposed a shutdown, intensifying a crisis that the UN warned might bring about the collapse of the country's economy.
Source: UGC
According to those familiar with the situation, production has stopped at the El-Feel field in southwest Libya, and local operators are signalling a gradual nationwide stop to pumping.
Statista reported that in 2023, Libya, Algeria, and Angola were among the leading oil-producing countries in Africa, with output above 55 million metric tons each. Nigeria topped the list with roughly 74 million metric tons.
Issues in Libya
Following the decision by the internationally recognised government in the west to remove central bank governor Sadiq Al-Kabir, Bloomberg reported that the eastern Libyan authorities stated on Monday, August 26, that they would suspend all output and exports.
Ten years ago, the nation was divided into rival eastern and western governments. Being in charge of the monetary authority grants control over billions of dollars in income. For the majority of the previous year, Libya, which is home to the greatest oil reserves in Africa, has been producing roughly 1.2 million barrels of crude oil per day.
Following the toppling of longstanding ruler Moammar Al Qaddafi in 2011, Libya has been rocked by upheaval, with its energy resources serving as a crucial arena for factions fighting for political dominance and causing regular stoppages.
The fighting which started in 2014, was meant to come to a conclusion in 2020 with a cease-fire supported by the UN. Elections that were promised never took place, and Libya broke up again.
Al-Kabir has opposed the move to remove him from his position as head of the central bank since 2011. He has been at odds with Prime Minister Abdul Hamid Dbeibah of Tripoli for a long time and is supported by the east in this rivalry. Nevertheless, on Monday a delegation from the government visited the regulator's capital headquarters to name new executives.
Al-Kabir's critics claimed he has mismanaged oil revenue. The people of eastern Libya claim that throughout the nation's decades of independence, they have been sidelined and have not received a fair part of the income generated by the nation's crude output, which is mostly concentrated in their area.
The UN mission in Libya issued a warning against "unilateral actions" that could precipitate the country's financial and economic collapse and come at a high cost for the Libyan people.
In an effort to address the situation, it announced that it is calling an urgent meeting of all involved parties and called for the quick resumption of oil production.
Nigeria’s oil reserves hits new high
Legit.ng reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced an increase in daily crude oil production, from 1.25 million barrels daily in June to 1.61 million as of July 23, 2024.
The chief executive of NUPRC, Gbenga Komolafe, disclosed this as he addressed the House of Representatives Special Committee on Public/Investigative Hearing on Oil Theft and Losses.
Komolafe disclosed that Nigeria remains Africa’s largest crude oil producer, with reserves of about 37.50 billion barrels and a production capacity of 2.19 million daily.
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Source: Legit.ng
