LibyaPolitics

Military and political divisions impact Libya’s oil sector

As the conflict gets more complicated, the Libyan oil sector is facing the biggest pressures and challenges since stopping its exports last January this year, while the announcement by the Libyan tribes in the oil crescent areas to close oil fields and ports in response to their marginalization by the international community and the United Nations Support Mission in Libya against Turkish interference.

Libyan tribes had authorized the army leadership to manage the oil file, while the Supreme Council of the Oil and Gas Basin considers that the oil ports will not be opened for production unless by signing an agreement guaranteeing a fair distribution of oil and gas revenues to all Libyan regions.

In order to find a way out of the financial crises, the Vice-President of the Supreme Council of the elders and notables of Libya, Al-Senussi Al-Haleeq, presented a proposal earlier to open a new international account in which all Libyan oil revenues are deposited, pointing out that the tribes oppose depositing all the money from the export of oil in the Central Bank of Libya. This was also announced several times in negotiations with the international community.

There is a widespread debate regarding the current proposal for opening a bank account in Geneva under the supervision of the United Nations; so that all oil revenues will be deposited in it and then distributed fairly, provided that 50% of the revenues be in the western region, 38% in the eastern region and 12% in the southern region. Meanwhile, the Government of National Accord still rejects this proposal.

Between the tribal demands on the one hand, and the refusal of the National Oil Corporation on the other hand. The question remains open. Will Libyan oil be a key to solving the crisis? Or a reason to ignite the conflict again?

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