Middle East

Libya Misses Oil Price Boom As Political Division Continues | News

Oil and gas prices may skyrocket around the world, but Libya has not benefited despite its abundance of oil

The country’s oil sector, which is the main driver of the country’s economy, has been once again hampered by the political divisions and instability that continue to plague the country.

On April 18, the National Petroleum Corporation (NOC) of Libya announced a state of force majeure. This declares that the contract cannot be fulfilled and “Painful wave of closure”, After troops in eastern Libya prevented Zueitina oil terminal staff from entering the building. Then, the next day, operations at the Brega Terminal were shut down again.

The Zueitina Oil Terminal alone accounts for almost a quarter of Libya’s 1.2 million barrels of oil per day.

The incident in Zuetina and the subsequent closure of key economic elements reflect the difficult and volatile situation facing Libya. Two rival governments Compete for the right to rule the country.

The House of Representatives, a parliament in Libya, argues that Abdul Hamiddbeiba, the prime minister of the UN-sanctioned national unity government, has expired and that Fatiba Shaga, the person they swore, should become prime minister. There is. ..

“The closure of the oil terminal and the port [military commander Khalifa] Haftar and his allies will enforce a roadmap for the House of Representatives, more specifically overthrow Tripoli’s National Unity Government and impose a parallel government led by Fathi Bashagha, “said Tripoli-based academic and political analysts. Youssef Bashagha said. Haftar, the head of the Libyan National Army militia and the most prominent military player in eastern Libya.

Libya’s political analyst Mohammed Elger agreed that the blockade of the oil sector was being driven by political tensions and considerations.

“Opposites of Prime Minister Doveiba of the National Unity Government are concerned that he will spend his oil and gas income. [$6bn of which was recently transferred by the NOC to the Central Bank of Libya in Tripoli on April 14] To buy more time for myself and to buy support from armed groups in western Libya, “El Jazeera told Al Jazeera.

“The camp supporting Bashaga hopes that the suspension of oil and gas production will accelerate the expulsion of Doveiba and his government from Tripoli,” Elger added.

Eastern troops are “frustrated”

This is not the first time the oil sector has fallen victim to political tensions between Libyan factions.

In July 2019, the NOC declared unavoidable after Libya’s largest oil field, El Shahara, was closed by militias as part of Haftar’s bid to squeeze Tripoli during an attack in the capital.The attack eventually failed Turkish intervention Support GNU in early 2020.

Libya has the largest oil reserves in Africa, and oil revenues are essential to the functioning of the Libyan economy.

Many of the major oil terminals and ports are in the east and are under the de facto control of the army loyal to Haftar. However, experts suggest that the latest blockade reflects frustration rather than the strength of Haftar and his allies.

“”[Despite the vote by the House of Representatives on Bashagha’s government], Doveiba is still backed by influential international forces, “said Libyan scholar and commentator Ahmed Mayuf. “Bashaga has found it difficult to enter the capital, Tripoli, since proclaiming the new Prime Minister in March, which urged him and his allies to take a stricter approach to the National Unity Government of Myanmar. The reason is.

“The Bashaga government has taken over the government buildings of the eastern city of Benghazi and the southern city of Sabha with the support of the Haftar army that controls these cities,” Mayuf added.

Bashaga seemed to soften his claim that he would enter Tripoli by holding his first cabinet meeting in Sabha on Thursday, suggesting that it was not a priority.

International support

Despite the lack of international support Bashaga received, Daveiba may not yet be completely satisfied with his own level of international support.

According to Bashabaki, last week’s visit to Dbeiba’s neighboring country, Algeria, is now in favor of GNU, but “probably part of a strategy to establish a balance with Egypt’s strong support for Bashaga’s parallel government. Met”.

In mid-April, Cairo invited representatives of the High Council of State and the House of Representatives of Libya to a five-day meeting, attended by UN Special Representative of Libya Stephanie Williams.

Talks will resume next month as the United Nations promotes the underlying consensus and constitutional framework for elections.

As energy prices soar due to the war in Ukraine, the question remains whether the oil blockade in Libya will affect international efforts to promote political trade.

“”[The oil blockade] It just urges the international community to seek elections that Bashaga and his allies do not want to see, “Bashabi said. “The tactics of Bashaga and his allies will also reinforce the belief that elections are the only viable solution that may bring some form of political stability to Libya.”

Eljar, meanwhile, suggested that pressure did not necessarily lead to the release of the blockade, and Bashaga might decide to move forward without the blessings of the international community.

“The timing of the oil blockade exposes the coalition led by Fatty Bashaga to bad light given the global energy crisis caused by the war in Ukraine,” Elger said. “”[However, Bashagha and his allies] Having a good relationship with the international community, he has decided to undertake more decisive actions to expel Daveiba and his government. “

https://www.aljazeera.com/news/2022/4/26/libya-misses-out-oil-price-boom-political-divide-continues Libya Misses Oil Price Boom As Political Division Continues | News

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