Oilfield closures in Libya expanded on Wednesday, with the Sarir field nearly shutting down production entirely, according to two field engineers, amid a political dispute over control of the central bank and oil revenue.
Authorities in the east, where most of Libya's oilfields lie, declared on Monday that all production and exports would be halted.
Sarir was producing about 209,000 barrels per day (bpd) before output was reduced, the engineers told Reuters.
Force majeure had already been announced on exports at the 300,000 bpd Sharara oilfield, and this week, Reuters reported disruptions at El Feel, Amal, Nafoora and Abu Attifel.
In July, Libya, an OPEC member, was producing about 1.18 million barrels of oil per day.
The move to shut off Libya's main source of revenue comes in response to the internationally recognized Tripoli-based Presidency Council sacking Central Bank of Libya (CBL) chief Sadiq al-Kabir, prompting rival armed factions to mobilize.
Libya descended into chaos after a NATO-backed uprising toppled longtime dictator Moammar Gadhafi in 2011.
It is currently split between a U.N.-supported government in Tripoli and rival authorities based in the east. Each side has been backed by different armed groups and foreign governments.
Prime Minister Abdul Hamid Mohammed Dbeibah, installed through a U.N.-backed process in 2021 and head of the Tripoli-based Government of National Unity (GNU), said this week that oilfields should not be allowed to be shut "under flimsy pretexts."
On Tuesday, U.S. Africa Command Gen. Michael Langley and Chargé d'Affaires Jeremy Berndt met putschist Gen. Khalifa Haftar, who leads a force called the Libyan National Army that controls the country's east and south.
"The United States urges all Libyan stakeholders to engage constructively in dialogue," with support from the United Nations Support Mission in Libya and the international community, the U.S. Embassy in Libya said on social media platform X.
Benchmark Brent oil prices were down 1.2% to $78.35 per barrel as of 10:39 a.m. GMT as concerns about Chinese demand and risks of a broader economic slowdown offset concerns about potential supply losses from Libya and elsewhere.