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The Libyan government replaced the head of the National Oil Corporation (NOC) recently in a dramatic move. That prompted the United States to warn against any armed confrontation over the sector. The North African country’s vast oil reserves triggered a number of disputes, affecting the stability of the country
The Libyan government replaced the head of the National Oil Corporation (NOC) recently in a dramatic move. That prompted the United States to warn against any armed confrontation over the sector. The North African country’s vast oil reserves triggered a number of disputes, affecting the stability of the country.
The NOC had largely stayed neutral despite years of the division since the 2011 toppling of dictator Kadhafi in a NATO-backed rebellion. However, in a decree made public recently, the unity government of Abdulhamid Dbeibah appointed former central banker Farhat Bengdara to replace NOC head and veteran technocrat Mustafa Sanalla.
Dbeibah’s move against Sanalla follows months of rising tensions in Libya. The country’s eastern-based parliament appointed a rival government, led by former interior minister Fathi Bashagha. He is backed by military strongman Khalifa Haftar, who is the rebel leader. Dbeibah has refused to cede power before elections, and Bashagha has so far failed to take office in Tripoli, raising fears of renewed conflict just two years after a landmark truce ending a ruinous attempt by Haftar to seize the capital by force.
The US embassy said that it was following developments with deep concern and stressed that the NOC was vital to Libya’s stability and prosperity. Since April, pro-Haftar groups have blockaded key eastern oil facilities to put pressure on Dbeibah. Libya’s crude and condensate exports have nosedived from around one million barrels per day in March to over 400,000 so far in July. The blockade has also contributed to crippling power shortages that sparked angry protests earlier this month. The blockade also comes amid a supply crunch on global oil markets due to the Russia-Ukraine war.
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US President Joe Biden is expected to take up this issue with Saudi Arabia when he visits the kingdom shortly. Libya, meanwhile, sits on Africa’s biggest proven crude reserves, with easy access to European markets.US Ambassador Richard Norland, who has been working on a mechanism to manage the highly disputed revenues from Libya’s crude sales, said Sanalla’s replacement can be contested in court but must not become the subject of armed confrontation.
