Libya: Oil fields closed and exports suspended by Eastern Authorities

Authorities in Eastern Libya announced on Monday, August 26, 2024, the closure of all oil fields and terminals and halted exports indefinitely amid a severe political crisis with the UN-recognized government in Tripoli. This move comes in response to Tripoli’s takeover of the Central Bank and the replacement of its governor, Al Siddik al Kabir, by Tripoli authorities.

The conflict between al Kabir and outgoing Prime Minister Abdelhamid Dbeibah, which started over budget disagreements, has intensified. Al Kabir had criticized the expenditure of state funds, which are largely derived from oil revenues, without visible development projects. Over the past three years, spending has totaled nearly 90 billion euros.

The Central Bank, which manages and distributes oil revenue, has been a focal point of contention. Recent events included failed attempts to oust the governor and the kidnapping of a bank director. On Monday, a group aligned with Dbeibah forcibly entered the bank and the office of the governor who had previously closed the bank and sent staff home.