Libya’s oil and gas sector, the main source of income for the war-torn country, is facing a new challenge from protesters who are demanding better services and accountability from the authorities.
The Corruption Eradication Movement, a group of activists who say they are fighting against graft and mismanagement in the oil industry, has issued a 72-hour ultimatum that ends on Friday to the government and the National Oil Corporation (NOC).
The group wants the NOC chairman, Farhat Bengdara, to step down over what they call “violations amounting to the level of crime”.
Gas Pipeline at Risk
The protesters have threatened to shut down two key facilities near the capital Tripoli: the Mellitah complex, a joint venture between NOC and Italy’s Eni, and the Zawiya refinery, the country’s largest functioning refinery.
The Mellitah complex supplies gas to Italy through the Greenstream pipeline, which is vital for both countries’ energy needs. Any disruption to the pipeline could have serious consequences for the European market, especially in the winter season.
NOC declared force majeure on Sunday, a legal clause that allows it to suspend its contractual obligations due to unforeseen circumstances. The company said the closure of Sharara had suspended the crude oil supplies to the Zawiya terminal and refinery.
A Decade of Turmoil
Libya’s oil sector has been a frequent target of protests and blockades since the 2011 uprising that toppled longtime leader Muammar Gaddafi. The country has been plagued by violence and political instability, with rival factions vying for power and control over the oil wealth.
The NOC, which is based in Tripoli and recognized by the United Nations, has tried to maintain its neutrality and operate across the divided country. However, it has faced many challenges and threats from armed groups, local communities, and parallel institutions.
The NOC said on Tuesday that Bengdara had met with the leaders of the Fezzan region to discuss the repercussions of the force majeure and the ways to resolve the crisis. The company also urged the protesters to end their actions and allow the resumption of oil and gas production.
Libya, which holds Africa’s largest proven oil reserves, has seen its output fluctuate dramatically in the past decade, from nearly 1.6 million barrels per day before 2011 to as low as 100,000 barrels per day in 2020.
The country’s oil sector has recently recovered from a months-long blockade imposed by forces loyal to eastern commander Khalifa Haftar, who launched an offensive to capture Tripoli in 2019 but was repelled by the internationally recognized Government of National Accord (GNA).
In October 2020, the parties signed a ceasefire agreement that reopened oil facilities and formed a new interim government.
The new government, headed by Prime Minister Abdulhamid Dbeibeh, has pledged to improve the living conditions of the Libyan people and to unify the state institutions, including the oil sector.
Despite the challenges and uncertainties, many Libyans hope that the oil sector can play a positive role in the country’s recovery and stability.
The NOC has announced several plans and projects to increase oil and gas production and to upgrade the infrastructure and facilities.
The company has also expressed its commitment to environmental and social responsibility, and to supporting the development and diversification of the Libyan economy.
The international community, including the UN, the European Union, and the United States, has voiced its support for the NOC and its efforts to maintain the integrity and unity of the oil sector.
They have also called on all parties to respect the ceasefire agreement and to refrain from any actions that could jeopardize the peace process and the oil industry.
Source: Reuters
