Libya’s attempts to resuscitate its faltering oil industry took another hit as protesters closed an oil & gas pipeline from the country’s Wafa oilfield.
The pipeline transports around 30,000 barrels per day of light condensate.
The protesters demands have not yet been confirmed but the shutdown is believed to have been prompted by the interim government’s decision to extend its mandate without calling for an election.
Protesters have also threatened to close a pipeline from the El Sharara field in the south of the country, which operates at 340,000 barrels per day.
If this threat were to materialise, the Libyan economy would struggle to cope. The country is already dealing with a 600,000 barrel per day stranglehold on its eastern ports, which are being occupied by armed militants. The government has said that they may not be able to afford to pay public sector salaries if the occupation continues. The country’s economy is stretched and has no slack to allow for the closure of the El Sharara pipeline.
Negotiations between the government and protesters are ongoing to try to avert further action.
Â
