Libya’s state petrol company declared on Sunday force majeure at the key Zawiya Refinery in western Libya after armed clashes nearby.
In a statement, the National Oil Corporation (NOC) said the refinery storage tanks sustained significant damage from gunfire that caused serious fires.
"This damage is a direct consequence of armed clashes using light and medium weapons in the refinery’s vicinity," it added.
The NOC warned that its security and safety personnel were unable to bring the fires and gas leaks under control.
"This situation puts the lives of workers and the entire surrounding population at considerable and unpredictable risk," it said, calling on authorities to urgently intervene to stop the clashes "and keep oil facilities out of the conflict zone, regardless of the causes or motives."
Libya holds Africa’s largest crude reserves, but years of conflict and violence in the country since the 2011 ouster of longtime ruler Moammar Gadhafi has hobbled production and exports.