The stoppage of operations in the so-called "Oil Crescent" is reportedly costing the Tripoli government up to $60 million a day

Libya's oil basin paralysed in support of Fathi Bashagha

photo_camera AFP/ABDULLAH DOMA - Tank at the oil port of al-Sidra, about 25 kilometres east of the northern city of Ras Lanuf.

A week after the Libyan National Oil Company (NOC) declared force majeure to justify the non-fulfilment of its crude oil supply contracts, many fields and operations in the so-called Oil Crescent, Libya's eastern oil basin, remain at a standstill. 

According to the NOC statement, operations in the Oil Crescent have been affected by disruptions caused by groups of armed individuals who have reportedly taken over plants or threatened and coerced workers to abandon their posts in the oil fields. According to information published by France24 and the specialised media Al-Arab, these groups are said to belong to the tribal authorities in the region. 

AFP/AFP

The reason behind the paralysis caused by the Libyan tribes in the oil basin is no more than their support for the new government of Fathi Bashagha, appointed by the parliament in Tobruk, backed by Field Marshal Haftar and opposed to the government in Tripoli led by Dbeibé. According to Al-Arab, the conditions of the Libyan desert tribal 'sheikhs' include the transfer of power from Prime Minister Dbeibé to Fathi Bashagha. The locals are also demanding a more equitable sharing of oil revenues. 

The Tripoli government's oil minister, Mohamed Aoun, has stated that the stoppages in the Oil Crescent are causing Libya, a country already impoverished by the political crisis it has been suffering since 2011, to lose 60 million dollars a day. This sum comes from the 500,000 barrels of brent coming from the El-Sharara wells, the largest in the country. 

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Fathi Bashagha has issued a statement in an attempt to mediate and calm the situation. Following a meeting with representatives of the Oil Crescent region, Bashagha called for the resumption of oilfield operations and the supply chain to Libyan customers.

 "We clearly demand the need to resume oil exports in accordance with disciplined legal mechanisms that ensure the integrity and transparency of the management of oil revenues in a fair manner for all Libyans," the House of Representatives-appointed prime minister wrote on the social network Twitter. 
 


On the part of the UN-backed government in Tripoli, Oil Minister Mohamed Aoun has held a meeting with his cabinet to find a solution to the problem. A special committee was reportedly formed to handle the closures, and Prime Minister Dbeibé reportedly sent security forces to the fields to prevent work from being hindered. He also reportedly instructed the state prosecutor's office to prosecute those responsible for the blockades. Despite an optimistic government statement in Tripoli, there seems to be no guarantee that the blockade will end in the coming days. 

Despite Dbeibé's threat to take forceful action, according to the media outlet Al-Arab, the areas in question, which are too far east, are said to be beyond the effective control of the military forces loyal to him. 

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The UN special mission, led by Stephanie Turco Williams, has also called for the resumption of operations in the Oil Crescent region. According to a statement by Williams, Libya's economic situation and oil should not be politicised or used as a weapon of blackmail. Oil is historically Libya's main source of income. It accounted for about 90% of the country's exports in the 2019 financial year. 

The current energy market context, marked by the war in Ukraine, and the demands of the United States and Europe to increase daily Brent production by OPEC is an unstable scenario to see the world's 16th largest oil producer unable to meet its supply contracts. The situation could be seen both negatively for Dbeibé, for his inability to fix the situation, and for Bashagha or Haftar, who could be perceived as blackmailers, with crude oil as an instrument. This crisis could affect both parties' support in the coming months, amidst negotiations and plans to bring about democratic elections in Libya. 

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