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AfrOil COMMENTARY AfrOil

(Image: NOC)
(Image: NOC)
Libyan oil: Still on hold?

LNA chief Haftar has apparently not lifted the blockade that

prevents the country’s coastal terminals from exporting oil

LIBYA’S oil industry has remained largely idle “The embassy welcomes what appears to be
this week, despite promises by Khalifa Haftar, a Libyan consensus that it is time to re-open the
WHAT: the leader of the Libyan National Army (LNA), energy sector,” the statement said. “As Libyans
Haftar promised to let to lift his blockade of coastal export terminals suffer from an acute electricity crisis rooted in
the oil industry resume and other infrastructure facilities owned by the forced shutdown of oil and gas production,
exports by September National Oil Corp. (NOC). grapple with the [coronavirus] COVID-19 pan-
12, according to the US Reports on the possibility of a re-opening demic and confront the threat posed by foreign
Embassy in Tripoli. began circulating on September 12. On that mercenaries and armed groups at critical energy
date, the US Embassy in Tripoli issued a state- infrastructure sites, the implementation of these
WHY: ment on a recent exchange of letters between commitments is urgently needed to promote the
As of press time, exports Haftar and Ambassador Richard Norland. well-being of the Libyan people.”
were still on hold and the In its statement, the embassy said that the
LNA chief was faced with
a political crisis among LNA leader had made a “personal commitment Impact on prices
allies in Benghazi. … to allow the full re-opening of the energy The US embassy’s announcement led some
sector no later than September 12.” It noted that industry observers to speculate about the
WHAT NEXT: Haftar had made that pledge as rival Libyan fac- possibility that world crude prices might
Oil flows are not likely to tions, including the Tripoli-based Government sink in response to the restoration of Libyan
be restarted this month. of National Accord (GNA), came together for production.
UN-facilitated talks and said it hoped this turn The North African country was producing
of events would benefit both NOC and the Lib- more than 900,000 barrels per day (bpd) in early
yan energy sector as a whole. January.

P4 www. NEWSBASE .com Week 37 16•September•2020