Libya’s eastern government said it may shut down oil production and exports in protest after a militia aligned with rival authorities in the west stormed the state-oil company’s headquarters.
“Repeated attacks” on the National Oil Corp. and its affiliates may spur “precautionary measures that include declaring force majeure on oil fields and terminals,” or moving the firm’s main office to a “safer city,” Libya’s eastern administration said in a statement.
The threat is the latest signs of a spiralling crisis in the North African OPEC member, which has been roiled by years of civil war and is split between two governments who frequently feud over control of the continent’s largest crude reserves. Lower oil prices are also hitting the country’s finances, potentially spurring competition between its armed factions over the division of wealth.
Tensions between the administration of Prime Minister Abdul Hamid Dbeibah in the capital, Tripoli, and the eastern parliament had been subdued, helping oil production rise to the highest in years. But fatal clashes among militias nominally loyal to Dbeibah have this month upended the equilibrium and risk drawing in forces from beyond the city and spurring fresh conflict.
Libyans in the east, where military commander Khalifa Haftar holds sway, have long alleged the region doesn’t receive its fair share of energy revenue. The government there shuttered facilities for more than a month last summer in a dispute over who leads the central bank, depository of the oil wealth.
The country is currently pumping just under 1.3-million barrels a day, according to data compiled by Bloomberg. Most of the production is exported, and frequent shutdowns can impact global oil markets.
A militia from a city near the capital barged into the NOC’s headquarters in Tripoli on Wednesday, according to people familiar with the events. They demanded they be assigned the paid job of protecting the facility and stayed for about half an hour, the people said.
The NOC said there was a minor scuffle in the building’s reception that was handled by administrative security and there’d been no impact on its work.
The Tripoli militia fighting earlier in May highlighted a perilous situation in the city, where myriad militia compete to influence key institutions, revenue streams and infrastructure.
At least eight people were killed when pro-Dbeibah fighters took on other armed groups, in what the premier said was an attempt to restore security and state authority. Some Libyans later took to the streets of Tripoli to demand Dbeibah’s resignation.
The United Nations’s envoy to Libya, Hanna Tetteh, has said it’s unclear if the prime minister will be able to reassert control in western Libya, She also warned cuts in US funding for the UN may hamper its efforts to press on with a political process meant to lead to reunification and landmark elections.
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