In a startling turn of events, Libya’s oil production has plummeted by a staggering 63% due to recent oilfield closures, exacerbating the ongoing conflict between rival eastern and western factions in the North African nation.
The country’s National Oil Corporation (NOC) has sounded the alarm, highlighting the significant loss in oil output as the battle for control over the country’s oil revenues intensifies.
The current oil blockade in Libya has escalated, with eastern authorities pushing back against western counterparts in a power struggle over the appointment of the central bank governor, a pivotal position in a nation where oil revenue reigns supreme.
Control over the Central Bank of Libya has become a flashpoint in the conflict, with both sides vying for influence and support from external players such as Turkey and Russia, further complicating the already volatile situation.
As the backbone of the Libyan economy, the oil sector plays a crucial role in the country’s stability and prosperity.
The sudden drop in oil production has incurred substantial costs and necessitated a Herculean effort to resume operations at the dormant oilfields.
NOC has underscored the dire consequences of the oil closures, citing not only the economic impact but also the toll on the sector’s infrastructure and efforts to boost production.
NOC has reiterated that the shutdown of oilfields was not initiated by the company itself, distancing itself from the conflict-driven closures.
The corporation’s teams are currently evaluating the losses stemming from the halt in production, underscoring the magnitude of the crisis facing the Libyan oil industry.
The repeated disruptions to oil production have dealt a severe blow to Libya’s economy, further destabilizing an already fragile nation torn between competing factions.
The standoff over the central bank governor’s appointment has deepened the divisions between eastern and western forces, prolonging the oil blockade and exacerbating the country’s socio-political crisis.
Eastern factions have made it clear that they will not relent on their demands until the internationally recognized authorities in Tripoli accede to their terms, escalating tensions and prolonging the standoff over Libya’s oil resources.
The decision to dismiss Kabir by Presidency Council chief Mohammed al-Menfi earlier this month caused controversy and backlash from various parties within Libya.
The eastern-based House of Representatives parliament and the Libyan National Army led by Khalifa Haftar strongly rejected the move.
Tensions between the different factions within Libya have been rising, with conflicting loyalties and agendas causing further instability in the region.
The power struggle for control and influence within the country has led to political turmoil and division, hindering efforts for peace and stability.
The dismissal of Kabir is just one example of the ongoing conflicts and challenges faced by the Libyan government as they continue to navigate a complex and volatile political landscape.
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