Page 5 - AfrOil Week 41

AfrOil COMMENTARY AfrOil

A busy month Few signs of progress
NOC and its upstream units have been very busy One key condition of the deal that the parties
since September 18, the date upon which Khal- struck in mid-September was an agreement in
ifa Haftar, the head of the Benghazi-based Lib- principle to consider options for establishing a
yan National Army (LNA), ordered his troops commission to examine options for improving
and allies to lift the blockade that has paralysed the Libyan economy and for sharing oil revenues
the country’s oilfields, pipelines, refineries and across different regions of the country. Thus far,
coastal export terminals for months. He did so though, there has been no concrete sign of pro- “
within the context of negotiations with Ahmed gress on this front. One key condition
Maiteeq, the deputy prime minister of the Trip- This lack of forward movement is not exactly
oli-based Government of National Accord surprising, given the complexity of the situation. of last month’s
(GNA). On the one hand, Maiteeq’s position within the
They have restarted production at a number GNA ranks is not unassailable. The deputy pre- deal between
of oilfields, including Sarir, Mesla and Ham- mier does serve as head of the Peace Commis- Haftar and
ada as well as Sharara, and resumed shipments sion, which has been heading talks with LNA
through some of the pipelines serving those and other factions. But he has yet to secure the Maiteeq was
sites. They have begun sending crude to the endorsement of GNA Prime Minister Fayez
Zawiya and Sarir refineries. Additionally, they el-Sarraj, who is reportedly keen to retain his an agreement
have carried out the investigations necessary influence after he leaves his post later this year,
to determine whether the coastal terminals are for the deal. in principle to
“safe” – that is, free of foreign troops and there- On the other hand, the September 18 deal has consider options
fore eligible to end the declarations of force attracted criticism on other fronts. For exam-
majeure that have kept them idle for so long. ple, Osama el-Juwaili, the head of the Western for sharing oil
So far, three ports have earned this status Military Zone (WMZ) faction, has rejected the
– Brega, Marsa el-Hariga and Zueitina. Two agreement between Haftar and Maiteeq, saying revenues across
of these – Brega and Marsa el-Hariga – have it did not take all of the players’ interests into
already been able to resume oil exports. Mean- account. the country
while, the Melittah terminal has been able to lift It remains to be seen whether these com-
some condensate, even though it has not been pounding factors serve to derail or delay a new
certified as “safe” yet. agreement before October 18. If they do, though,
There is no guarantee, though, that these they will give LNA and its allies a reason to put
achievements will last. Haftar made it clear last the blockade back in place very soon. Haftar has
month that his agreement with Maiteeq would long complained that Libya’s oil earnings are
only serve to lift the blockade for a month, and not distributed fairly, and his stance does not
the end of that month is fast approaching. seem unreasonable under current conditions,
Moreover, it is approaching with little evi- with most of the country’s oilfields under the
dence that Haftar and his allies have been able control of various rebel factions and all oil reve-
to hammer out a more permanent accord with nues flowing to NOC headquarters in Tripoli for
Maiteeq. deposit and distribution by the central bank. ™

Week 41 14•October•2020 www. NEWSBASE .com P5