Libya Resumes Oil Production After Resolving Central Bank’s Dispute

Libya has resumed its oil production following a central bank’s leadership dispute that halted it in August, according to the National Oil Corporation (NOC) statement on Thursday.

The dispute, now resolved, initially began when the Tripoli-based administration called for replacing the long-serving Central Bank governor, Sadiq al Kabir, with Mohamed Alshukri.

The internationally recognised (U.N.-backed) government aimed to oversee the country’s oil revenues and was countered by its opposing government, leading to protests and a blockade on oil production and exports.

Such a move plunged Libya’s oil output by 81%. Hence, Libya’s oil dropped from 1.2 million bpd to 450,000 bpd. However, following the UN Support Mission in Libya (UNSMIL) intervention, the rival governments reached a U.N.-brokered agreement and announced plans to resume their oil production and shipments.

Upon resolving, the state-owned NOC noted in its latest statement that oil and crude output had reached 1.217 million barrels per day (bpd), upping from 1.158 million bpd on Friday, October 11, 2024.

The efforts of the sector’s workers are crowned with a rapid return of crude oil and condensate production rates to what they were before the force majeure declaration, the statement reads.

Several companies, including Sarir Oil, which maintained two (B22 and B15) oil wells, have resumed production following the maintenance undertaken during the halt period.

Meanwhile, Libya’s oil crisis followed the 2011 NATO-led intervention, resulting in the death of Muammar Gaddafi and destabilisation of the oil-rich region of North Africa.

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Mayowa Durosinmi

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M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

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