Political Tensions Escalate as Eastern Libya Closes Oil Fields and Terminals
Amid escalating political tensions, eastern authorities in Libya have announced the suspension of all oil exports and the closure of oil fields and terminals. This decision follows a takeover of the Central Bank of Libya by officials from Tripoli and the replacement of its governor. The move, described as a response to illegal incursions, highlights the ongoing conflict between the rival governments in Libya and raises concerns over the country's economic stability. As Libya's oil production halts, the implications for the nation's economy and global oil prices remain significant.
HASSAN BENYOUB 
Libya's eastern authorities announced on Monday the closure of all oil fields and terminals, suspending production and exports indefinitely amid escalating political tensions with the UN-recognized government in Tripoli. This decision comes in response to a takeover of the Central Bank of Libya (CBL) by Tripoli-based officials and the replacement of its governor.
Closure of Oil Operations
The eastern administration, based in Benghazi, declared a "force majeure" on all oil operations, which account for approximately 90% of Libya's oil production. The move was prompted by what they described as "attacks and attempts to forcibly enter" the CBL's premises, which they claim disrupted banking transactions across the country. The eastern authorities criticized the Tripoli government for its efforts to control Libya's most crucial financial institution, stating that such actions threaten the stability of the nation's economy.
Background of the Conflict
Libya has been embroiled in chaos since the fall of dictator Muammar Gaddafi in 2011, leading to a division between two rival governments: the Government of National Unity (GNU) in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and the eastern administration supported by military leader Khalifa Haftar. The CBL plays a vital role in managing the country's oil revenues and state budget, which are essential for both administrations.The recent tensions escalated after the Tripoli government appointed a new governor for the CBL, a move that has been met with resistance from the eastern authorities. Critics have accused the current CBL governor, Seddiq al-Kabir, of mismanaging state resources, leading to protests and attempts to force his resignation.
Economic Implications
The closure of oil fields is expected to have significant economic repercussions, as Libya relies heavily on oil exports for its revenue. Analysts suggest that a decline in Libyan oil production could lead to an increase in global oil prices, with Brent crude already surpassing $80 per barrel following the announcement.The eastern administration has not specified how long the oil fields will remain closed, but the situation remains fluid as both sides continue to navigate the complex political landscape. The National Oil Corporation (NOC) has yet to confirm the cessation of production, although some subsidiaries have indicated plans to reduce output.
Conclusion
The closure of oil operations in eastern Libya underscores the ongoing political strife and economic instability facing the country. As both rival governments vie for control, the impact on Libya's oil sector and its economy will be closely monitored by international observers. The situation raises concerns about the potential for renewed conflict and the challenges of achieving a unified governance structure in Libya.
