Protesters Block Oil Exports from Ports in Eastern Libya
Protesters demand the relocation of the headquarters of several oil companies to the Oil Crescent region to ensure fair development.
Two engineers reported on Tuesday that protesters prevented a tanker from loading oil at the Sidra port, while three other engineers confirmed the halt of oil loading operations at the Ras Lanuf port. This new tension threatens to negatively impact Libya’s oil sector, which frequently faces escalations due to political divisions and the continued use of energy resources as a bargaining tool by rival factions.
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In a statement addressed to the National Oil Corporation (NOC) a few days ago, the protesters demanded the relocation of the headquarters of several oil companies to the Oil Crescent region. They reiterated that their demands aim to secure equitable development for their region and improve living conditions.
Protests have previously disrupted oil operations. In January last year, protests led to the shutdown of production at the Sharara oil field. In recent months, disagreements related to the Central Bank of Libya’s crisis also prompted the closure of some ports and oil fields.
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For years, Libyan oil has been used as a bargaining chip by conflicting parties. International reports have highlighted declining global confidence in the sector due to Libya’s ongoing crisis and power struggles.
At the peak of the conflict between political factions vying for control of the Central Bank of Libya and oil revenues, more than half of Libya’s oil production, approximately 700,000 barrels per day, was halted.
Last December, the World Bank projected a recovery in Libyan oil production to reach 1.2 million barrels per day next year, which could provide critical revenue for the Libyan state. However, these projections depend on avoiding further shutdowns of oil fields amid power struggles.
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A report published a few months ago by the British site “Petroleum Economist” highlighted the declining international confidence in Libya’s oil sector due to frequent shutdowns that have repeatedly paralyzed production and exports.
The report described a climate of uncertainty among foreign companies operating in many Libyan oil fields, amid concerns about the sustainability of production and exports in the face of political divisions and disputes between the Eastern and Western authorities.
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Various international reports have indicated that Libya’s oil sector has incurred financial losses estimated at around $100 billion in recent years due to disruptions, recurring crises, and prolonged disputes.
Currently, Libya has two governments: one led by Abdul Hamid Dbeibeh, based in Tripoli and governing the West, and another led by Osama Hamad, appointed by the Parliament and based in Benghazi, which administers the East and some southern cities. This situation has deepened the political crisis, which Libyans hope to resolve through presidential and parliamentary elections. However, these elections remain stalled due to disagreements over their laws and the executive body that will oversee them.
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