Maghreb Edition

Libya: Parliamentary speaker calls for the shutdown of national oil productionF

Posted On 25 June 2019

Number of times this article was read : 264

Libya’s National Oil Company has warned that any bid to tamper with the sector could escalate unrest in the conflict-hit country, after the parliamentary speaker called for a halt to production. In a statement issued late Saturday, NOC said it “is concerned by recent calls for the shutdown of national oil production”. “Any deliberate disruption of oil sector operations will severely impact national revenue streams, potentially render NOC in contravention of contractual obligations, and create further division in the country.”

Libya has been wracked by conflict since the 2011 uprising that ousted and killed dictator Moamer Kadhafi, with rival administrations vying for power and to control its oil wealth. The conflict has been exacerbated since April when commander Khalifa Haftar, who is based in the east of the country where most oil fields are located, launched an offensive against the capital Tripoli. The city is the seat of the internationally recognised Government of National Accord (GNA), while the elected parliament which supports Haftar is based in eastern Libya.

Last week parliamentary speaker Aguila Saleh Issa said oil production must cease, accusing the GNA of using oil revenues to finance the militias fighting Haftar, in an interview with an Egyptian news channel. The country’s oil company, which is headquartered in Tripoli, has repeatedly insisted on its neutral status and refused to be drawn into the conflict.

“This crucial source of income to the state, vital to all Libyans, must remain de-politicised and uninterrupted,” NOC said on Saturday. But it also called for “economic transparency — including the equitable distribution of oil revenues nationally — to be embraced by all parties as an integral element of Libya’s future stability, and any lasting political settlement”.

Libya’s oil revenues are managed by the country’s central bank, which is also based in Tripoli. Both Haftar and the eastern parliament have repeatedly said that oil revenues are not evenly distributed and accuse the GNA of using the funds to finance its militias.

Last month UN envoy Ghassan Salame said that Libya — which produces more than a million barrels of oil a day — was “committing suicide” and plundering its oil wealth to pay for the war. On Saturday he met Haftar to discuss the Tripoli offensive and ways to “accelerate the transition towards reaching a political solution” in the country, the United Nations said.

By AFP

Subscribe to Urgent Notifications and Newsletter

Most Recent Stories from the Region

Mali Army, Russian Allies Accused of Executing Civilians Near Mauritania BorderF

Seven Malian refugees traveling from Mauritania were allegedly executed by Malian soldiers and Russian Africa Corps personnel near Ahl El Kory, close to the Mauritanian border, after their vehicles were stopped on March 6. Local sources say the unarmed Fulani civilians were shot or had their throats cut, while other passengers were beaten, questioned as suspected jihadists, then released.

Niger: Armed Attacks Target Military Bases in TahouaF

Armed militants launched coordinated assaults on military facilities in Tahoua, a strategic city in northwestern Niger. The attacks targeted Air Base 401 at the local airport and the headquarters of the 42nd Inter‑Arms Battalion. Nigerien forces repelled both assaults after intense fighting, leaving several soldiers lightly wounded and multiple attackers dead, with five suspects arrested.

Global Energy Markets Jolt as Iran War Disrupts Gulf Oil FlowsF

Oil prices surged toward $119 per barrel as the conflict involving Iran disrupted tanker traffic through the Persian Gulf, forcing several Gulf producers to reduce output and pushing governments to consider emergency energy measures. Saudi Arabia joined Iraq, Kuwait, Qatar, and the UAE in cutting production as shipments stalled and storage capacity tightened. With hundreds of tankers idling near the Strait of Hormuz and major shipping insurers suspending coverage, the crisis is rapidly evolving from a regional military conflict into a global energy shock.

Written by The North Africa Journal

The North Africa Journal is a leading English-language publication focused on North Africa. The Journal covers primarily the Maghreb region and expands its general coverage to the Sahel, Egypt, and beyond, when events in those regions affect the broader North Africa geography. The Journal does not have any affiliation with any institution and has been independent since its founding in 1996. Our position is to always bring our best analysis of events affecting the region, and remain as neutral as humanly possible. Our coverage is not limited to one single topic, but ranges from economic and political affairs, to security, defense, social and environmental issues. We rely on our full staff analysts and editors to bring you best-in-class analysis. We also work with sister company MEA Risk LLC, to leverage the presence on the ground of a solid network of contributors and experts. Information on MEA Risk can be found at www.MEA-Risk.com.