Libya’s defence ministry seeks help from tribal chiefs over oil stand-off

Tribalism is a major influence in Libyan society even after the overthrow of Muammar Qaddafi

Libya's National Oil Corporation said armed militias had stormed Al Sharara oilfield on Saturday. Reuters

Libya’s oil production returned to about 1 million barrels a day earlier this month. Reuters

Al Sharara oilfield pumps out about 350,000 barrels per day. Reuters

Smoke from a damaged oil facility darkens the sky in Ras Lanuf, Libya. The country's oil facilities were damaged during the civil war. Getty Images

After Libya's civil war, experts were pessimistic about the recovery of its oil sector. AFP

A Libyan oil worker at a refinery inside the Brega oil complex in Libya.

A pipeline at the Zueitina oil terminal, west of Benghazi. Reuters

A powerful Libyan militia affiliated with the unity government's defence ministry is asking tribal chiefs in the south-west for help in ending a siege of one of the country’s biggest oil fields.

The closure of Al Sharara field by armed men on Monday has led to a sharp drop in production and the suspension of crude exports from two key ports.

The field, located about 900 kilometres south-west of the capital Tripoli, produces 315,000 barrels per day – about a third of the country's daily production in 2021. It is managed by the state-owned National Oil Corporation in co-operation with a consortium of French, Spanish and Norwegian companies.

“We strongly condemn the continuing closure of the oil field, and urge key tribes in the region to help resolve the crisis as the state budget sustains massive daily losses,” the Petroleum Facilities Guard (PFG) militia said on Wednesday.

The PFG came into existence in 2012 when some rebel groups in the uprising against longtime dictator Muammar Qaddafi joined forces to control key oil facilities in the country. Since then, it has switched sides and alliances with different administrations and currently reports to the unity government formed in February, a few months after a ceasefire agreement between the main power blocs in the East and the West and their affiliated militias.

Tribal affiliation became deeply entrenched in Libyan society under Qaddafi, who used it to consolidate his grip on power and to nip any potential mutiny from the army in the bud. Critics blame tribalism for the weak sense of patriotism in the country and social ills including favouritism and inequality.

The PFG statement made clear that the armed men at Al Sharara were not officially affiliated with it but had worked to provide protection for oil installations.

PFG sources told The National that the men were demanding military accreditation and the construction of a new road from the field to the closest port in the city of Al Zawiya. But the siege is also linked to the political power struggle between rival politicians who have proxy links to foreign countries, they said.

The siege of Al Sharara comes amid growing political uncertainty in Libya after electoral authorities said the presidential election scheduled for Friday is unlikely to take place.

On Wednesday, the parliament’s election commission said it was impossible to hold the vote on December 24 amid disputes over election laws and eligibility of some candidates. The country’s High National Election Commission has suggested pushing the vote back by a month.

Oil production rebounded significantly after last year’s ceasefire agreement between the rival political power blocs in the East and the West and the formation in February of a national unity government.

Oil infrastructure at Libya's largest oil field, Al Sharara. Reuters

Libya has Africa’s largest proven oil and natural gas reserves, which account for 98 per cent of the state's income. The closure of Al Sharara oil field could counter efforts by the Organisation of Petroleum Exporting Countries and its partners to boost Libya's production.

Oil prices rallied about 35 per cent this year as economies recovered from the worst of the coronavirus pandemic, according to data compiled by Bloomberg.

However, the spread of the Omicron variant has put pressure on the market, with Brent crude slumping this week to near $70 a barrel.

Libya suffered one of its worst oil blockades in 2013 when a group of militias took control of the oil fields for several months in the eastern Cyrenaica region, demanding secession from the central authority within a federal system.