UN-backed Libyan Government and Pro-Haftar Rebels Agree to Re-Open National Oil Operations
Khalifa Haftar, a general in the Libyan National Army (LNA), announced that he would allow public oil companies to resume production in eastern Libya during a televised speech on September 18. This marks the first time that the plants will carry out operations since the beginning of the year.
The Deputy Prime Minister of the UN-backed Government of National Accord (GNA), Ahmed Maetig, also took part in the announcement. The decision, however, received pushback from many inside the government, including Prime Minister Fayez al-Sarra, who allegedly did not approve of the final deal.
The LNA took control eastern Libya on January 17 when pro-Haftar groups supported by the Petroleum Facilities Guard, a Libyan oil company and militia, blocked access to oil fields and oil export terminals in the area. This blockade aimed to pressure the GNA into sharing a higher percentage of hydrocarbon revenues with Libyan citizens. Libyan oil fields, amongst the largest in North Africa during peak production, can generate upwards of 1.2 million barrels a day.
The blockade, however, has pummeled the economy and led to an increase in social unrest among lower-class civilians. The National Oil Corporation (NOC) has lost 9.8 billion dollars since the beginning of the COVID-19 lockdown measures and Libyans across the country have had to face rolling blackouts and deteriorating living conditions. In response, civilian-led protests have rocked Benghazi. Police killed at least one protester after demonstrators burned down a station in Al-Marj earlier this month.
Haftar has engaged in civil war with the GNA since April of last year when his forces led an offensive against the capital city Tripoli. Militias loyal to him, including those from Russia’s Wagner Group, Syrian Shabiba fighters, and other North African mercenaries, continue to receive support from Egypt, Russia, and the United Arab Emirates. Furthermore, Emirati oil corporations faced accusations from the NOC of smuggling oil out of eastern Libya despite a force majeure agreement between the NOC and the GNA to cease all exports.
Over a year of fighting since the initial offensive on Tripoli has allowed GNA militias, backed by Turkey, to push pro-Haftar forces out of western Libya to Sirte. Despite this, however, Haftar retains control of most of the country’s oil fields.