Haftar grants Dbeibeh a deadline for the fair distribution of oil revenues and threatens war
The Commander of the Libyan National Army, Marshal Khalifa Haftar, confirmed on Monday that his forces will give a deadline, until the end of August, for the fair distribution of oil wealth in Libya. He also hinted at military escalation in case of non-compliance, indicating that the recent conflict over oil revenues may hinder initial agreements to proceed with elections.
Haftar’s escalation comes after about two weeks of threats from Oussama Hamada, the head of the parallel government appointed by the parliament, who complained about the lack of “fair distribution of oil revenues” by halting the flow of Libyan oil and gas and their exports as well. The Cairo Declaration was also announced, protesting what he described as the “unlawful takeover of oil revenues by the Tripoli government’s National Oil Corporation.”
Oil revenues, the main source of income in Libya, are managed by the National Oil Corporation and the Central Bank of Libya, based in the capital, Tripoli, where the outgoing Government of National Unity led by Abdul Hamid Dbeibeh is located.
Haftar stated in a televised speech broadcasted by “Libya Al-Hadath” channel from Benghazi in eastern Libya: “We have received hundreds of memos from the Libyan people demanding the formation of a high committee for financial arrangements, consisting of financial and legal figures capable of managing public funds fairly.” He emphasized that a “deadline will be given for the committee to complete its work by the end of next August.”
Haftar also criticized the authorities responsible in Tripoli, referring to a financial and economic catastrophe, embezzlement of public funds, and a shortfall in oversight bodies. He stressed the urgent need to take practical steps to distribute oil revenues fairly.
He accused the Central Bank in Tripoli of “committing crimes in documentary credits,” citing data from the Central Bank and reports from the Audit Bureau and Administrative Control Authority in Tripoli.
He stated that Central Bank data indicates that documentary credits for 2022 were distributed to 1,646 companies, with the eastern region receiving only 7% of the total credits, while the southern region received only 2% of these credits.
Haftar added that reports from the Audit Bureau and Administrative Control Authority in Tripoli indicate mismanagement of the Libyan people’s resources of over 200 billion dinars without any benefit to the Libyan people. He emphasized that these irresponsible actions cannot be ignored.
The Commander of the Libyan National Army also criticized Western ambassadors and accused them of negative interference in the Libyan crisis, demanding that they refrain from interfering in internal affairs.
He stated, “We point out the excesses of the ambassadors of some foreign countries, led by Norland (…). They have proven their abysmal failure to achieve a result that contributes to resolving the Libyan crisis as much as they have deepened the divisions among Libyans,” referring to the US Special Envoy to Libya, Ambassador Richard Norland.
In a message posted at the end of June on the US Embassy’s Twitter account, Norland urged Libyan political parties to “cease threats of an oil blockade that would be extremely detrimental to the Libyan economy and all Libyans.”
To respond to complaints regarding the sharing of oil revenues, Norland encouraged the “establishment of a comprehensive mechanism for revenue management” in a transparent manner that preserves the “non-political” nature of the National Oil Corporation. This proposal resurfaces whenever competing factions intensify their disputes over oil revenue shares.
But the comments of the US ambassador were met with negative reactions from political actors in the eastern part of the country, including the prime minister of the parallel government, Oussama Hamada, who “advised” Norland to “respect the sovereignty of the judiciary” in Libya and “refrain from any interference.”
Field Marshal Haftar, in front of a large crowd representing his military leaders, called on Western ambassadors to “stay out of Libyan affairs.”
He continued, saying, “Our people do not need lessons and preaching because the solution to the Libyan crisis is purely Libyan, and the past years have proven that the ambassadors of these countries have no vision to help the Libyans in resolving their crisis because they are different, and their interests in Libya intersected, and we became the victims and the ones paying the price.”
He added, “We tell them that no matter how much the Libyans differ, they will agree away from your rejected interventions.”
Haftar emphasized that “the solution in Libya lies in holding presidential and parliamentary elections,” stressing the need to remove all foreign forces and mercenaries from the country, in implementation of “the decisions of the Security Council and the actions of the Libyan 5+5 Joint Military Committee.”
Since March 2022, there has been a power struggle in Libya between the Government of National Unity in Tripoli, led by Dbeibah, which controls the capital, the oil corporation, and the central bank, and the other government appointed by the House of Representatives, led by Hamada.
The Libyan economy depends entirely on oil exports, which have recently been estimated at around 1.2 million barrels per day, while most of the gas is used for domestic energy production. The Tripoli government seeks to increase its production, especially after signing an agreement with the Italian company “Eni” to invest in two offshore fields.
Libya has been facing a political crisis since last year when the parliament rejected extending the mandate of the outgoing Government of National Unity led by Dbeibah in Tripoli and tasked it with forming a new government that has not been able to take control of the capital. Recently, its president, Fathi Bashagha, was ousted, and Hamada was appointed as his successor.
The issue of fair distribution of Libyan oil revenues is one of the crises in the country, as the appointed government by the House of Representatives and the Dbeibeh government are in conflict over control of these revenues.
The appointed government by the House of Representatives controls more than 65% of Libya’s oil production, and any oil blockade will have negative effects on the Libyan economy in the face of a deteriorating living situation that cannot tolerate any new crises.
Observers believe that the return of the conflict over oil revenues is due to the fear of some parties, led by the House of Representatives, of the Dbeibah government using those revenues for electoral purposes, as the head of the Government of National Unity seeks to participate in the upcoming elections if they take place.
Since the 2011 uprising supported by NATO, Libya has experienced several oil blockades, as local groups and major factions cut off supplies as part of political tactics to pressure the opposing party.
The last major blockade was lifted by the Libyan Army last year when the Tripoli government appointed a new president for the National Oil Corporation, who was said to be close to the army commander, Field Marshal Khalifa Haftar.
The United Nations is facilitating an economic dialogue among Libyans with the aim of unifying the divided economic institutions and devising a plan for the fair distribution of oil revenues, which the country relies on entirely for its expenditures.
Oil exports from Libya have been disrupted multiple times since 2011, as local groups and major factions have cut off supplies as part of political tactics.
Last summer, oil fields and ports in the country were closed for three months by tribal groups demanding a change in the former head of the National Oil Corporation, Mustafa Sanalla.
Diplomatic efforts aimed at a permanent solution to the conflict in Libya have focused on moving towards national elections, a goal announced by all parties, but it has faced repeated frustrations due to disagreements over election rules and temporary control of the government.
