East Libya oil ports handed to NOC

889

Eastern Libyan commander Khalifa Haftar’s forces handed control of oil ports to National Oil Corporation (NOC) based in the east, a spokesman said, a move the internationally recognised NOC in Tripoli dismissed as illegal.

If implemented, transfer of control would create uncertainty for buyers of Libyan oil who normally go through NOC Tripoli. It could deepen the split between east and west Libya, home to rival governments since 2014.

In comments later confirmed to Reuters, Ahmed Mismari, spokesman for Haftar’s Libya National Army (LNA), said on television no tanker would be allowed to dock at eastern ports without permission from an NOC entity based in Benghazi.

Mismari said the move was to prevent oil revenues being used to fund militias such as “Chadian mercenaries” and because of a lack of recognition from the chairman of NOC Tripoli, Mustafa Sanalla, for the “sacrifices” of LNA troops guarding the ports.

Armed forces allied to Ibrahim Jathran, a faction leader, briefly seized Es Sider and Ras Lanuf oil ports until the LNA expelled his troops last week. The LNA says fighters from Chad helped Jathran.

Mismari said 184 LNA soldiers were killed and dozens wounded in five attacks on the ports, which have been repeatedly fought over by rival factions.

Asked how oil exports would be sold in the future via the east, he referred questions to NOC in Benghazi, not recognised abroad. Faraj Said, head of the Benghazi NOC, said his office was planning to issue instructions to oil companies to start work.
“We are legitimate,” Said told Reuters. “Whoever wants to do business with us is welcome.”

NOC Tripoli said in a statement the LNA “decided to put itself above the law” and any attempts by parallel institutions to export oil were illegal and would fail as they had failed in the past.

LEGAL ACTION
“NOC warns companies against entering into contracts to buy oil from parallel institutions,” it said. “They will not be honoured and NOC will pursue legal action by all options available.”

Haftar’s forces control most of eastern Libya, home to a largely powerless parallel government, central bank and NOC entity opposing the UN-backed administration in Tripoli. Eastern factions accuse the Tripoli central bank of misspending oil revenues and allocating insufficient funds to the east.

A spokesman for the eastern government said its prime minister and central bank met to discuss how to start managing oil revenues.

The eastern government tried in 2015 to sell oil bypassing NOC Tripoli, but did not find buyers, banks or insurers willing to take the legal risk. Western powers and UN Security Council resolutions protected NOC Tripoli as the sole body marketing and selling Libyan oil.

The fate of Es Sider and Ras Lanuf, two of Libya’s largest ports, is crucial to the recovery of the country’s oil industry. Their closure led to production losses of up to 450,000 barrels per day from a total national output of a little over a million bpd.

Hariga port in Tobruk near the Egyptian border as well as Brega and Zueitina terminals south-west of Benghazi are under Haftar’s control.



In 2013, Jathran seized and blockaded several eastern oil ports. In March 2014, US Navy SEALS seized a tanker that loaded crude from one port and in 2016, Jathran lost control to the LNA. The LNA handed the terminals to NOC Tripoli, seeing Libya’s production and exports rise sharply.