Libya: Oil production to resume in eastern part of country

After a suspension of more than a month due to a significant political crisis involving the UN-recognized Government in Tripoli, eastern Libyan authorities announced on Thursday, October 3, that oil production and exports from the region will resume.

Oil operations, which have been halted since August 26, are set to restart following the lifting of the “state of force majeure” that had been imposed on all oil fields and terminals in eastern Libya. This development was confirmed in an official statement posted on Facebook by the eastern authorities.

The decision to resume oil production and exports was made by the government aligned with Marshal Khalifa Haftar, following “successful” mediation efforts to resolve the ongoing conflict related to the management of the Central Bank of Libya (CBL). This crisis began in August when the Tripoli government seized control of the CBL and replaced the governor, who was perceived as favoring Haftar’s faction.

Resolving the dispute over the CBL, a vital institution responsible for distributing oil export revenues, took more than a month. A breakthrough was achieved last week when the two rival factions reached an agreement on appointing Naji Issa as the new governor of the CBL, with Issa being sworn in on Wednesday. This consensus was facilitated under the auspices of the UN, with additional pressure from several Western countries advocating for a resolution to the crisis.