The US ambassador to Libya, Richard Norland, told CNN on Thursday that due to political tensions in the country, “there are some parties seeking to profit by falsifying oil production data.” Previous figures provided by the oil ministry were “inaccurate”, he said, adding that “actual production is significantly higher”.
Here’s what you need to know about Libya’s oil:
Why does Libya’s oil matter?
The North African nation has 3% of the world’s proven oil reserves, said Yousef Al Shammari, CEO and head of CMarkits oil exploration in London. While a member of the OPEC oil cartel, it is not bound by its production ceilings due to the political crisis it is facing, which means it can export and export as much oil as it wants.
Its proximity to Europe means it can easily transport oil by sea via much shorter routes from other producers, and most of its oil is exported to European countries, he said.
What is the biggest obstacle facing Libya’s oil production?
The warring parties in the country have used oil as a lever as they fight for power. There is a political confrontation between rival governments in the east and the west that has led armed groups supporting the eastern government to take control of the oil facilities and shut them down several times.
The UN-backed Government of National Unity (GNU) is located in the capital, Tripoli, and is headed by caretaker Prime Minister Abdulhamid Dbeibeh. To the east is a rival, parliament-elected government led by Fathi Bashaga.
Most of Libya’s oil fields and infrastructure are located in the east of the country, where Commander Khalifa Haftar and his Libyan National Army (LNA) have armed control. He is an ally of the Bashaga government.
Who is responsible for oil production?
On paper, the Tripoli-based National Oil Corporation (NOC) is the entity in charge of controlling the production and marketing of the country’s oil abroad.
The warring parties in the east and west have been trying to take control of the NOC since 2014, but the sector is overseen by oil minister Mohammed Oun, who belongs to the UN-backed government in the west.
But his influence is weak, says Libyan analyst Jalel Harchaoui, and he is in a power struggle with the NOC, which is “making every effort” to maximize output.
CNN could not be reached for comment.
On the ground, however, Eastern-based commander Khalifa Haftar is largely in charge, Harchaoui says. Armed brigades under his command have stopped production several times.
What is the role of foreign parties?
Oil Minister Owen blamed foreign powers with competing interests for the political crisis in Libya. “There has to be agreement between them on the best ways to a mechanism that will take Libya out of this crisis,” he told CNN.
Haftar has been backed by Egypt, the United Arab Emirates and Russia.
The Wagner Group, a Russian private military contractor, entered Libya in 2019 in what the UN found to be an attempt to support Haftar and his LNA. Hundreds of Russian personnel have been deployed around the largest oil fields, experts say.
In 2020, at the height of their involvement, Wagner took control of Libya’s Sharara oil field, one of the largest. The seizure also helped Haftar maintain a blockade on oil exports. The presence of Russian personnel allows Moscow to cut off Libya’s oil supplies if it so wishes, Khartsawi said.
Norland, the US ambassador, said the drop in Libyan production “certainly serves Russian interests and Moscow undoubtedly supports it”, but attributed the current unrest to “domestic Libyan actors”.
Is oil pushing the West to return to Libya?
Earlier this month, the UK embassy responded in Tripoli, and in March, the United States proposed a mechanism to monitor Libya’s oil revenues to resolve a political crisis that has disrupted production.
The approval of the mechanism at a political level should follow, but the Libyan parties agreed in principle on “certain priority spending areas,” said Norland, who lives in Tunisia.
Asked if the United States had confidence in the UN-backed government to restore stable production, Norland said “no political entity has sovereign control over all of Libya, including oil fields.”
Digestion
The White House says Biden’s meeting with Saudi officials will “include” the successor The White House said Sunday that President Joe Biden’s upcoming meeting with Saudi officials would “include” the kingdom’s successor, Mohammed bin Salman, hours after Energy Secretary Jennifer Granholm suggested that he agree.
Background: Grenholm told CNN on Sunday that she “understood” that Biden would meet one-on-one with the Crown Prince next month during his planned trip to Saudi Arabia. On Friday, Biden said he would not meet with the MBS, but that the successor would attend an international meeting. Why it matters: With Russia invading Ukraine, rising global energy prices, and the growing nuclear threat from Iran, the United States is trying to build relations with Saudi Arabia and the Gulf states. Biden’s upcoming trip to Saudi Arabia complicates the president’s commitment to make the country “outcast” for his role in the assassination of Saudi journalist Jamal Kasogi.
Iran says “too early” to talk about Tehran and Riyadh reopening embassies It would be premature to talk about Iran and Saudi Arabia reopening embassies in each other’s capitals, an Iranian foreign ministry spokesman said on Monday, following five rounds of talks last year between rivals to improve relations.
Background: Riyadh severed ties with Tehran in 2016 after Iranian protesters stormed the Saudi embassy in the Iranian capital following the execution of a Shiite cleric in Saudi Arabia. In April, the two held a fifth round of talks in Iraq, and the first batch of 39,635 Iranian Hajj pilgrims authorized to perform their religious duties in Mecca arrived in Saudi Arabia this month. Why it matters: The warming of ties between the two could significantly de-escalate regional tensions. In a telephone conversation with his UAE counterpart on Saturday, Iranian Foreign Minister Hossein Amir-Abdollahian “highlighted the neighbors’ priority in Iran’s foreign policy and called for more consultations … on expanding bilateral ties.”
Bahrain to start accepting the Russian “Mir” payment card.
Bahrain’s ambassador to Russia Ahmed Al Saati has said that his country will soon accept the Russian “Mir” payment card, according to the Russian news agency RT. The ambassador said the move would allow Russian tourists to spend their holidays in Bahrain.
Background: Russia set up its own card payment system in 2014 because it feared that US and European sanctions against some Russian banks and businessmen due to the annexation of Crimea could block transactions with Mastercard and Visa based in USA. A total of 116 million cards have been issued. Why it matters: The recent expulsion of major Russian banks from the SWIFT messaging system means that customers are finding it difficult to operate outside Russia. Acceptance of “Mir” will work to soften this blow. The countries currently accepting the “Mir” are: Turkey, Vietnam, Armenia, Uzbekistan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, South Ossetia and Abkhazia.
Around the area
The controversial practice of celebrating shootings in the Middle East has returned to the forefront after the death of a child in Egypt from a stray bullet fired by a former politician.
A court in Egypt late last week banned the use of weapons during celebrations, according to local news agencies. The decision was made after a gunman shot dead a child at a wedding in Buhaira Government, killing a child as he watched the festivities from his balcony. The former politician’s weapons license has since been revoked.
The new decision gives the authorities the power to reject, revoke, suspend or shorten weapons licenses as it sees fit.
Victims of festive shootings are not uncommon in the Arab world. On New Year’s Eve last year, a Syrian refugee in Lebanon was killed and a plane at Beirut airport was hit by festive gunfire. In September, top footballer Mohammed Atwi died from a stray bullet during the funeral of a victim of the 2020 bombing in Beirut. . He then wrote on Twitter, saying “the tragic scene we saw from some people after the election process is a clear violation of the law. ”
Jordan’s al-Mamlaka television network estimates that between 2013 and 2018, there were up to 1,869 casualties in the country from festive shootings.
By Mohamed Abdelbari
