UN warns Libya oil disruption could trigger sanctions

The United Nations has warned that attacks on, or actions undermining, Libya’s oil and energy infrastructure could trigger measures under relevant UN Security Council resolutions, as a disruption to a major crude pipeline caused significant production and revenue losses.

The warning came after the Sharara-Zawiya oil pipeline was shut on 21 September, sharply reducing crude flows from the Sharara field to the Zawiya refinery and port. Libya’s National Oil Corporation (NOC) said an armed group closed Valve No. 7 on the pipeline, forcing production at the major oil field to fall.

The NOC estimated that the four-day shutdown through 24 September resulted in 720,362 barrels of lost crude production and more than $75 million in direct financial losses. It warned that a prolonged disruption could affect fuel supplies and force additional refinery units to shut down.

The disruption also affected the Zawiya refinery, with the NOC saying one refining unit was shut down to preserve operations at another as crude supplies dwindled. By 26 September, reported losses had risen to about $95 million, according to The National.

The UN Support Mission in Libya (UNSMIL) said the continued disruption was affecting Libya’s main source of national income, causing losses in oil production and public revenue while raising risks to fuel supplies and electricity generation. It called for oil infrastructure and public resources to be kept outside political and security disputes.

The UN mission also recalled that actions targeting or undermining Libya’s oil infrastructure may constitute grounds for measures under relevant Security Council resolutions. The Security Council renewed Libya’s sanctions regime in April through August 2027, including measures addressing illicit petroleum exports.

The immediate disruption was eased on Saturday, when the NOC said Valve No. 7 was reopened and pumping operations resumed, with crude flows gradually returning to normal.

The incident highlights the vulnerability of Libya’s oil industry to political, security and labor disputes. The country remains divided between rival political and armed factions, while oil revenues are a critical source of state income.