Page 4 - AfrOil Week 43

AfrOil COMMENTARY AfrOil

El Feel is the last major Libyan oilfield to resume production (Photo: File)

Libya back on track

The UN-brokered cease-fire agreement between GNA and LNA may

bring the country’s oil production back up to year-ago levels soon

JUST a few weeks ago, Libya appeared to be in a October 24. LNA did not re-impose the block-
precarious position. ade, and NOC continued to restore its produc-
WHAT: On the one hand, the country was making tion and transport networks.
The two main warring progress with respect to bringing its battered oil Then on October 23, a day early, GNA and
factions in Libya have industry back online. In light of the pledge by LNA signed a ceasefire agreement.
concluded a permanent, the Libyan National Army (LNA), controlled
country-wide cease-fire by Khalifa Haftar, to suspend the blockade on Ceasefire deal
agreement. its production and transport infrastructure, The UN Support Mission in Libya (UNSMIL),
National Oil Corp. (NOC) and its subsidiar- which brokered the talks that led to the cease-
WHY: ies were bringing fields back into production fire, announced the breakthrough on October
The deal clears the way and resuming exports to the world market. 23.
for crude output to move As a result, output levels were already topping “The 5+5 Joint Military Commission talks in
back to 800,000 bpd or
more. 350,000 barrels per day (bpd) by October 11. Geneva today culminated in a historic achieve-
On the other hand, the country was also ment where Libyan parties reached a permanent
WHAT NEXT: approaching a key deadline. Benghazi-based ceasefire agreement,” UNSMIL said in a state-
Lasting success may LNA had agreed on September 18 to lift the ment. “This achievement marks an important
depend on Tripoli’s blockade for one month, and as October 18 turning point towards achieving peace and sta-
ability to show that it has approached, there was no sign that it was likely bility in Libya.”
addressed complaints to strike a deal with the Tripoli-based Govern- According to UN representatives, the accord
about the distribution of ment of National Accord (GNA) on the distribu- is permanent and will cover the entire country.
oil revenues. tion of oil revenues and other contentious issues. GNA controls most of north-western Libya,
Nevertheless, the two sides did not resume while LNA and its allies hold most of the rest of
hostilities once the deadline had passed. Instead, the country, including the largest oilfields and
they reportedly agreed to extend talks until multiple export terminals on the coast.

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