Libya's NOC Fears Shutdown of Strategic Zawiya Refinery Amid Ongoing Drone Attacks

Libya's National Oil Corporation (NOC) warned it could declare force majeure and fully halt operations at the Zawiya refinery if drone attacks on the facility continue, after a third strike on oil assets in the city over the span of Sunday and Monday. A drone hit a fuel storage tank on August 10, sparking a fire that caused the tank, which held roughly 4.5 million liters of gasoline, to collapse. The company declared a "maximum emergency" in the region and called for an investigation into the attacks.

Zawiya sits about 40 kilometers west of Tripoli and is currently Libya's largest operating refinery, with a capacity of roughly 120,000 barrels per day, since the Ras Lanuf refinery remains out of service. The plant is connected to the 300,000-bpd Sharara oilfield, making disruptions there a direct threat to a meaningful share of Libya's crude and fuel output. No group has claimed responsibility for the strikes, though the attacks come amid rising tensions between the internationally recognized government in western Libya and a militia commander who controls Zawiya.

The latest drone reportedly targeted an oil blending and filling plant operated by the Zawiya Oil Refining Company, landing near a main storage tank and a pipeline network that supplies the domestic market. It followed earlier strikes on a water desalination unit and a naphtha reservoir at the same site over the preceding days. No casualties have been reported.

A prolonged shutdown could tighten Libya's domestic fuel supply and add friction to a national oil sector still recovering from years of infrastructure damage. Traders and regional observers may watch for a formal force majeure filing, any claim of responsibility for the attacks, and whether NOC can restore operations without a full production halt at Zawiya.

Related Stocks

• NOC