Libya NOC Warns of Force Majeure as Drone Strikes Hit Zawiya Hub
A series of drone attacks on Libya's Zawiya oil terminal has prompted the state energy firm to warn of potential export halts, underscoring persistent supply risks in a key Mediterranean crude hub.
A drone has struck a power station at the Zawiya oil export terminal, marking the fourth attack on the Libyan complex in recent days. No group has claimed responsibility for the escalating strikes, which follow previous hits on a naphtha tank and a separate oil storage facility.
The targeted power plant sits adjacent to Libya's largest oil refinery. Its potential shutdown threatens to halt refining operations entirely, removing a critical source of domestic fuel. Earlier attacks already destroyed a storage tank holding 4.5 million liters of gasoline, a loss that the facility's operator warns will deepen local fuel shortages.
For international crude markets, the primary concern is the threat to export flows. The Zawiya terminal handles 120,000 barrels per day, drawing its supply primarily from the Sharara field. As Libya's largest oil field, Sharara boasts a production capacity of 300,000 barrels daily. However, the field and its associated infrastructure are historically frequent targets for armed factions using blockades and sabotage to extract political concessions.
The National Oil Corporation has responded to the deteriorating security situation with a direct warning to trading partners. The state producer stated it may declare force majeure on Zawiya exports if the drone strikes persist and inflict further physical damage. A force majeure declaration would legally excuse the company from meeting its crude delivery contracts, abruptly pulling those barrels from the global market.
These localized disruptions highlight the structural fragility of Libyan energy infrastructure, a persistent risk premium factor for European and global oil markets. Supply lines from North Africa remain highly sensitive to sudden militia activity.
Despite the immediate threat of operational shutdowns at Zawiya, the NOC maintains ambitious long-term production targets. The company remains confident it can increase national output from the current 1.4 million barrels per day to 2 million barrels per day over the next few years.
However, reaching that production ceiling will require sustained capital investment and, crucially, an end to the political fragmentation that routinely exposes energy assets to damage. Until rival factions establish a durable settlement, international investors and trading houses must treat Libyan supply guarantees as highly contingent on localized security dynamics rather than state-level policy.
