Libya's eastern-based administration announced on Monday that it would shut down all oil fields and suspend all production and exports in a surprise move that is said to be in protest of the rival western-based government's decision to replace the central bank governor.
It was not immediately clear whether the decision would be implemented as Libya's internationally recognized government in Tripoli and National Oil Corporation (NOC), which controls the country's oil resources, have not made any comment.
However, NOC subsidiary Waha Oil Company announced it planned to reduce output gradually and warned of a complete halt to production, citing "protests and pressures."
Waha, which operates a joint venture with TotalEnergies and ConocoPhillips, has a production capacity of about 300,000 barrels per day (bpd), which is exported through the eastern port of Es Sider.
It operates five main fields in the southeast, including Waha, which produces more than 100,000 bpd, as well as Gallo, Al-Fargh, Al-Samah and Al-Dhahra.
Libya descended into chaos after a NATO-backed uprising toppled longtime dictator Moammar Gadhafi in 2011.
It is currently split between a U.N.-supported government in Tripoli and rival authorities based in the east. Each side has been backed by different armed groups and foreign governments.
Most of Libya's oilfields are in the east, which is under the control of putschist Gen. Khalifa Haftar, who leads the Libyan National Army (LNA).
The Benghazi administration did not specify how long the oilfields could be closed.
On Monday, two engineers at Messla and Abu Attifel told Reuters that production was continuing and there had been no orders to halt output.
Prime Minister Abdul Hamid Dbeibah leads the Tripoli-based government, while the administration in the east is headed by Osama Hammad.
Hammad, in his statement, called on the concerned bodies to implement the decision. He also said the move was to stop oil revenues from falling into the hands of an illegitimate group, referring to the Tripoli administration.
The latest tension came after the Tripoli-based Presidential Council recently replaced the central bank governor, Sadiq al-Kabir. The eastern-based administration and parliament continue to support him.
The recent developments raised fears of fresh fighting between the warring sides.
The NOC declared force majeure earlier this month at one of the country's largest oilfields, Sharara, located in Libya's southwest with a capacity of 300,000 bpd, due to protests.
Libya's oil production before Sharara's closure stood at about 1.2 million bpd.
El Feel in southwestern Libya would be the only functioning oilfield, with a capacity of 130,000 bpd, if production halts in the east.
