Libyan crude oil rerouted after pipeline fire

Libya kept oil moving from the Sharara field after a pipeline fire, redirecting crude oil through alternative routes to avoid a full disruption, as reported by Reuters on March 18th.

The National Oil Corporation (NOC) stated that the incident was caused by a leak at a valve on the Sharara export pipeline. To contain the damage, some crude oil was rerouted through the El Feel line toward Mellitah, while the remaining volumes were diverted through the Hamada pipeline to storage tanks in Zawiya.

The emergency response was aimed at limiting losses and preserving output from one of the country’s most important energy assets.

This development is particularly relevant since Sharara is one of Libya’s biggest oilfields and a major pillar of state revenue. Any interruption there carries implications not only for domestic refining and exports, but also for the wider stability of Libya’s fragile hydrocarbons sector, which has repeatedly been hit by protests, technical failures and political disputes since 2011.

Earlier on March 18th, engineers on site claimed that production was being reduced gradually after an explosion on one of the pipelines, and that repairs and technical assessments could take around two days. The NOC later maintained that production had not stopped, indicating that the authorities were trying to reassure markets and prevent fears of a more problematic shutdown.

Sharara, located in southwestern Libya, is operated by Acacus Oil Operations, a joint venture that includes the NOC as well as Repsol, TotalEnergies, OMV and Equinor. The field is linked to the Zawiya refinery, Libya’s largest functioning refinery, giving the incident added weight for the country’s energy network.

Even such a contained infrastructure accident can quickly become politically and economically significant. The Sharara fire is the latest reminder that although output may continue, the country’s oil sector remains highly exposed to sudden shocks.

Reuters, maghrebi.org