CYRENAICA DEFIES LIBYA OIL POLICY

Self-rule activists in eastern Libya on Wednesday (January 8th) declared plans to resume oil exports outside central government control.

The move by the self-declared Cyrenaica regional government marked a sharp escalation of its standoff with Tripoli, which on Sunday deployed the navy to prevent two tankers docking in the eastern port of al-Sedra to take on crude.

“We announce our intention to trade in crude after the government failed to meet our demands,” said Abd Rabbo Abdul Hamid al-Barassi, who heads the executive bureau of the regional government.

Barassi said that he was unilaterally lifting the force majeure declared by the state-owned National Oil Company, which has halted exports from the activist-held eastern ports.

He promised to export oil “publicly and via legal means”, respect all Libyan oil contracts signed with foreign companies and disclose revenues. His bureau was also willing to receive representatives from Fezzan and Tripoli to discuss the export of oil.

Barassi said federalist guards would provide protection for all vessels entering al-Sedra to prevent any repetition of Sunday’s naval action.

“We will protect tankers taking on crude from al-Sedra from the moment they enter Libyan territorial waters until they leave,” he said.

Libyan premier Ali Zidan on Wednesday called Barassi’s statement an attempt to “undermine national sovereignty”, AFP reported.

“Any state, company, group or gang that tries to send a ship to Libya’s oil ports without authorisation or agreement with the NOC… will face the necessary measures,” Zidan said, speaking of the possibility of “sinking” any vessel in contravention of the order.

Journalist Abdulmounaim al-Shumani also voiced doubts about the Cyrenaica strategy.

“I’m surprised with the statements of Mr. Abd Rabou, head of the executive bureau of Cyrenaica regional government, which I think don’t show a political mentality,” journalist Abdulmounaim al-Shumani told Magharebia.

“He described his government’s plan to export oil as legitimate, but failed to show us whence he got that legitimacy. Is it the legitimacy of a federal regime, or the legitimacy of secessionist region?” al-Shumani asked.

But Benghazi resident Khalid Mohamed said would support the plan, “if they can invest the revenues for the interest of Cyrenaica, especially in Benghazi”.

The money could help “build security and army forces that would protect the region’s resources”, he said.
“Zidan’s government is selling oil from western oilfields, but where is that money?” he asked.
Meanwhile, Libya output rose to 546,000 bpd after production resumed at the Al-Sharara oilfields, the National Oil Corporation said on Wednesday.


[ENERGY MIX REPORT]