Libya Reroutes Oil Flows After Leak, Fire at Sharara Field

Libya rerouted crude flows from its largest oil field after a pipeline leak triggered a fire, in a move aimed at limiting losses and maintaining production amid heightened global energy tensions.

The country’s National Oil Corporation (NOC) confirmed that the incident occurred along an export pipeline connected to the Sharara oil field, near the Al-Hamada region. Emergency teams, including firefighting and maintenance units, were immediately deployed to the site. No injuries have been reported.

Despite the disruption, officials said production at the Sharara field remains ongoing. Authorities redirected part of the output through the El Feel pipeline toward the Mellitah terminal, while the remaining volumes were diverted via the Hamada pipeline to storage tanks in Zawiya. These measures, the NOC noted, have “significantly reduced” crude losses.

The incident comes at a time when global oil markets are already on edge. Traders are closely monitoring any potential supply disruptions following escalating conflict in the Middle East involving the United States, Israel, and Iran, described by the International Energy Agency as an unprecedented shock to energy markets.

The ongoing conflict has strained supplies from several OPEC producers, even as major exporters such as Saudi Arabia and Iraq attempt to reroute shipments away from the increasingly volatile (Arabian Gulf).

Libya had been expected to export around 1.2 million barrels per day of crude in April, according to loading schedules. The Sharara field plays a central role in this output, producing approximately 228,000 barrels per day, making it the country’s single largest oil contributor.

Any sustained disruption at the site could tighten supply further, adding upward pressure on prices already driven higher by geopolitical instability and shipping constraints in critical chokepoints such as the Strait of Hormuz.

While the swift response has so far contained the operational impact, the incident underscores the fragility of oil infrastructure in politically and geographically sensitive regions.