Rival Libya governments try to end oil blockade

Libya's rival administrations are liaising independently with protesters to try to bring an end to demonstrations that have forced over 500,000 b/d of oil production offline.

The protesters are calling on Abdelhamid Dbeibeh's Government of National Unity (GNU) to transfer its authority to Fathi Bashagha's Government of National Stability (GNS). The latter was elected in late February by Libya's legislative body, the House of Representatives (HoR), but Dbeibeh has since rejected calls to surrender control, arguing that he should remain in charge until national elections are held in June.

As so often in the past, the political conflict has impacted Libya's lucrative oil and gas sector. The latest field and port blockades, which began on 17 April, had led to 530,000 b/d of production being shut in as of 19 April, according to a source at state-owned oil firm NOC.

The rival administrations have since been carrying out separate negotiations with the protesters. The GNU's oil ministry, led by Muhammad Aoun, said yesterday that it had met with tribal factions and that the parties were "in the process of reaching a final agreement" that would allow the suspended production to resume within days.

Bashagha has also visited the so-called "Oil Crescent" region of eastern Libya, a coastal area home to the largest fields and most of the country's oil export terminals. "We clearly demanded the necessity of resuming the export of oil in accordance with disciplined legal mechanisms that guarantee the integrity and transparency of the management of oil revenues," he said.

Tribes in the Oil Crescent have reiterated their demands that the GNU hand over power to the GNS and that NOC chairman Mustafa Sanalla be dismissed. They are also calling for NOC to receive sufficient funds to raise production and for oil revenues to be frozen in Libya's foreign bank until they can be fairly distributed to Libyan provinces by Bashagha's government.

The latest round of protests have disrupted operations at the 300,000 b/d El Sahrara and 70,000 b/d El Feel fields, as well as the Zueitina and Marsa el-Brega terminals. The smaller Abu al-Tilf, Intisar, Nakhla and Nafoora fields have also been forced to cut output, and armed clashes at Libya's largest operational refinery, the 120,000 b/d Zawia facility, damaged several oil product storage tanks last week, according to NOC.

In a meeting with Bashagha last week, the UN secretary-general's special adviser on Libya, Stephanie Williams, stressed the need to "insulate Libya's oil production from being weaponised for political purposes" and called for the oil blockade to be lifted.

By Ruxandra Iordache and Bachar Halabi