Libya oil terminals set to reopen in boost for UN-backed leadership

Shipments expected to start within two weeks after deal reached with militia blocking port facilities.

BENGHAZI // Libya’s UN-brokered presidency council has announced the reopening of the country’s vital oil terminals after 18 months of closure despite threats by a rival military commander that his forces could target tankers entering Libya’s territorial waters.

The announcement came after the UN envoy to Libya, Martin Kobler, struck a deal more than a week ago with the terminals’ militia commander, Ibrahim Jedran, who was behind the December 2014 closure that caused a sharp decline in state revenue.

Libya’s crude, known as light, sweet crude, is rare and especially valuable because it is easier for refineries to convert into diesel and petrol. Revenues have been dealt a major blow and Libyans lost more than $100 billion (Dh367bn) in potential profits over the past three years, according to oil officials. Libya exported 146 million barrels of oil in 2015, compared to 531 million in 2012.

Details of the deal with Mr Jedran, who commands the force known as Petroleum Facilities Guards, were not disclosed but critics speculated that it involved billions of dollars, sparking accusations that Mr Kobler and the UN were empowering the warlord viewed by many as having held Libya’s oil hostage for the past two years.

Moussa Al Kouni, the deputy head of the presidency council, said on Friday that oil exports from ports should resume within a fortnight.

“I think the resumption depends now on technical part ... and I think too it will happen from a week to two weeks, but not more,” he said. He said the agreement included payment of salaries to guards controlling the ports.

Mr Al Kouni had announced the reopening of the Ras Lanuf terminal late on Thursday with Mr Jedran beside him and expressed “hope and optimism” that the step marked the “beginning for our country’s recovery”.

Libya has sunk into turmoil since longtime dictator Muammar Qaddafi was toppled in 2011.

The three major oil terminals in the oil-rich North African country – Ras Lanuf, Al Sidra and Al Zueitina – operated intermittently under Mr Jedran’s control until his troops shut them down completely after an assault on Ras Lanuf by a rival, Tripoli-based militia.

Oil exports will still face a threat from forces loyal to Libya’s internationally-recognised parliament based in the east of the country.

Chief of staff Brig Gen Abdel-Razek Al Nadhouri threatened on Tuesday to target foreign oil tankers if they entered Libyan territorial waters without the parliament’s approval.

Libya remains split between the UN-brokered presidency council and unity government that are based in the capital, Tripoli, and the parliament in the east. According to a UN deal signed last year, the parliament is supposed to vote to approve the government – something it has still failed to do.

* Associated Press and Reuters