Several oilfields across Libya have halted output as closures spread, engineers said on Tuesday, amid a dispute over control of the central bank and the country’s oil revenue.

On Monday authorities in the east of the country where most of its oilfields lie threatened to close them all, stepping up their standoff with the country’s internationally recognised government in Tripoli, which is heavily dependent on the fields for its revenues.

There has still been no confirmation of any closures from the Tripoli-based government, or from the National Oil Corp (NOC) which controls the country’s oil resources.

However engineers at the southeastern Amal and Nafoora oilfields told Reuters production was halted, while engineers at Abu Attifel, also in the east, said output was reduced.

Engineers at the southwestern El Feel oilfield also said output had been halted. The field, which has a capacity of 70,000 barrels per day, is operated by Mellitah Oil and Gas, which is a joint venture between NOC and Italy’s Eni ENI.MI.

The government in Benghazi is not internationally recognised, but most oilfields are under the control of eastern Libyan military leader Khalifa Haftar.

Haftar said in a statement on Monday that the central bank should not be tampered with, rejecting what he called “illegal actions taken by entities that lack legitimacy and authority.”

Meanwhile, Tripoli-based Prime Minister Abdulhamid al-Dbeibah said in a statement oilfields should not be allowed to be shut down “under flimsy pretexts”.

NOC subsidiary Waha Oil Company had said on Monday it planned to gradually reduce output and warned of a complete halt to Libya’s production, citing unspecified “protests and pressures”, while another subsidiary, Sirte Oil Company, also said it would cut output.

The NOC declared force majeure earlier this month at one of the country’s largest oilfields, Sharara, located in Libya’s southwest with a capacity of 300,000 bpd, due to protests. The force majeure is still in force.

Libya’s overall oil production was about 1.18 million barrels per day in July, according to the Organization of the Petroleum Exporting Countries, citing secondary sources.

Brent crude prices LCOc1 were down slightly on Tuesday trading at about $81 a barrel, after rebounding more than 7% over the previous three sessions on supply concerns partly prompted by concerns over the impact of Libyan shutdowns.

Tensions over control of the central bank increased after Presidency Council head Mohammed al-Menfi in Tripoli issued a decision to replace its chief Sadiq al-Kabir, and the board, a move rejected by the parliament in the east.
Source: Reuters (Reporting by Ayman Werfali; Writing by Nayera Abdallah; Editing by David Holmes)