Libya’s Rival Factions Agree to End Central Bank Dispute, Oil Production to Resume

Libya’s rival factions have agreed to resolve a long-standing dispute over the leadership of the Central Bank of Libya (CBL). This move could restore the country’s oil production and exports.

Representatives from the eastern-based House of Representatives (HoR) and the western High State Council (HSC) signed the agreement in talks facilitated by the United Nations on Thursday. The deal appoints Naji Mohamed Issa Belqasem, the CBL’s Director of Banking and Monetary Control, as interim governor.

Mari Muftah Rahil Barrasi, the current deputy governor since 2023, will continue in his role. Both nominees are expected to receive approval within a week. The interim governor will then form a board of directors within two weeks.

The crisis had intensified last month when the Tripoli-based Presidential Council head, Mohammed al-Menfi, attempted to replace the long-serving central bank governor Sadiq al-Kabir. In response, eastern factions halted oil production, slashing output from over 1 million barrels per day (bpd) to around 450,000 bpd.

The National Oil Corporation reported that crude exports dropped to about 400,000 bpd in September from over 1 million bpd in August. The legislative body stated that the recent agreement would help to end Libya’s oil blockade.

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