Libya’s oil and gas sector, the lifeline of its economy, is on the brink of a major disruption as protesters threaten to close down two key facilities near the capital Tripoli. The protesters, who call themselves the Corruption Eradication Movement, have given the authorities a 24-hour ultimatum to meet their demands, which include the dismissal of the National Oil Corporation (NOC) chairman Farahat Bengdara.
The two facilities are the Mellitah complex and the Zawiya refinery. Mellitah is a joint venture between NOC and Italy’s Eni, and supplies gas to Italy through the Greenstream pipeline. Zawiya is connected to the Sharara oilfield, the country’s largest, which produces 300,000 barrels per day (bpd).
The protesters accuse Bengdara of mismanaging the oil sector, wasting public funds, and favoring foreign companies over local ones. They also claim that he has failed to address the environmental and social impacts of the oil and gas operations, especially in the western region of the country.
The protesters’ spokesman, Salem Mohamed, said that they decided to extend the deadline for negotiations with a six-person mediation team after reaching a consensus on most of their demands, except for Bengdara’s removal.
“If they do not return to us with an agreement on our all demands, especially the dismissal of Bengdara and the cancellation of all his decisions, we will close the Mellita complex and Zawiya refinery on Saturday afternoon,” Mohamed said.
It is unclear whether the protesters can carry out their threat, as the facilities are guarded by security forces and local militias. However, the possibility of a shutdown has raised concerns among the oil and gas industry, as well as the international community.
According to the International Energy Agency (IEA), Libya’s oil production averaged 1.1 million bpd in 2023, up from 0.8 million bpd in 2022, thanks to the relative stability in the country following a ceasefire agreement between the rival factions in October 2021. The IEA projected that Libya’s output could reach 1.4 million bpd by 2024 if the security situation improves and the political transition progresses.
However, the oil sector remains vulnerable to frequent disruptions, as various groups use it as a bargaining chip to press for their political and economic interests. In 2023, several oilfields and terminals were shut down by protesters, workers, and armed groups, causing losses of millions of dollars and affecting the country’s fragile recovery from years of conflict and chaos.
The UN-backed Government of National Unity (GNU), which took office in March 2023, has pledged to reform the oil sector and ensure a fair distribution of its revenues among the regions. The GNU also plans to hold national elections in December 2024, as part of the roadmap to end the decade-long crisis that erupted after the overthrow of Muammar Gaddafi in 2011.
However, the GNU faces many challenges and obstacles, as it struggles to unify the divided institutions, disarm the militias, and address the humanitarian and economic woes of the population. The oil and gas sector, which accounts for more than 90% of the state budget and 60% of the GDP, is crucial for the success of the GNU’s agenda and the future of the country.
The protesters’ demands reflect the widespread frustration and discontent among the Libyan people, who have seen little improvement in their living conditions despite the abundance of natural resources. They also highlight the need for transparency, accountability, and good governance in the oil and gas sector, which has been plagued by corruption, mismanagement, and inefficiency for decades.
The mediation team, which includes representatives from the GNU, the NOC, the House of Representatives, and the High Council of State, has expressed its hope that a peaceful and satisfactory solution can be reached with the protesters and that the oil and gas facilities can resume their normal operations without interruption.
The Libyan people, who have suffered enough from war and instability, deserve a stable and prosperous country that can harness its oil and gas wealth for the benefit of all its citizens.
Source: Reuters
