Sharara oilfield pumps out some 350,000 of Libya's 1.1 million barrels per day output (Reuters)
Sharara oilfield pumps out some 350,000 of Libya's 1.1 million barrels per day output (Reuters)
Sharara oilfield pumps out some 350,000 of Libya's 1.1 million barrels per day output (Reuters)
Sharara oilfield pumps out some 350,000 of Libya's 1.1 million barrels per day output (Reuters)

Neglected locals storm Libya's largest oilfield


Jamie Prentis
  • English
  • Arabic

Demonstrators in the southwest of Libya took over the country’s largest oil field in protest at the regions marginalisation by the government. They also threatened to close another medium-sized oil site nearby if their various demands, that seek to improve the quality of life for locals, were not met.

Libya’s National Oil Corporation (NOC) said the “disgraceful” move could cost the national economy $32.5 million daily but insisted production had not stopped despite threats to workers. There were various conflicting statements and rumours if the latter statement was true.

The NOC also accused local forces tasked with protecting the oil field of allowing the takeover and "exploiting the suffering of southern Libyans for personal reward." There were no reports of any casualties.

The takeover group, known as the Fezzan Anger Movement, stormed the Sharara oilfield, which pumps out some 350,000 barrels per day (bpd), on Saturday. It was there that they then said they could march on the nearby El Fil oilfield, which currently produces roughly 75,000 bpd. Both places are situated in the fertile Murzuq basin in Libya’s Fezzan region and make up a large chunk of the country’s oil output, currently hovering nationally at around 1.1 million bpd.

"We want to provide basic life requirements such as fuel, money, hospitals and security," the movements leader Bashir El Sheikh told The National. He said the government had not made any contact as of early Sunday morning Libyan time (GMT+2).

The Fezzan Anger Movement issued a range of demands that included increased security to protect the region and Libya’s porous borders, as well better equipment and more medicine for doctors.

Among the others were requests for better job opportunities for youngsters, in particular in the oil sectors, more cash in banks, the opening of all airports in the south and the resumption of industrial projects halted due to security concerns.

Libya’s vast and sparsely populated south is a haven for terrorists, sub-Saharan rebel groups and smugglers, and locals regularly complain of government neglect. Al-Qaeda in the Islamic Maghreb is believed to have the bulk of their members who operate in Libya present in the region.

“We strongly condemn this illegal act and warn all parties of the consequence of their actions. The corporation, in accordance with Libyan law, will legally pursue all parties involved in this act,” said NOC chairman Mustafa Sanalla in a statement.

Mr Sanalla added he fully understood the “plight” of southern communities and pointed to the NOC’s focus on delivering oil and sustainable projects for the region.

He was also fiercely critical of the 30th Infantry Battalion of the Petroleum Facilities Guards for not doing their duties.

“The closure of oil installations, the very event the PFG is supposed to prevent, damages the national economy, diminishes local economic opportunities, and ultimately harms all the Libyan people,” he added.

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The NOC publicly named the local commander of the group and those they held particularly responsible.

Earlier in the day the 30th Infantry Battalion said in a statement: “We as the force securing the field inform you that the Fezzan Anger Movement entered the field and stopped the production in line with the demands of the movement.”

Libya’s oil industry form a crucial part of propping up the conflict-ridden country’s precarious economy but frequently are attacked or taken over for a variety of reasons.

It caps a difficult 10 days for the NOC, with extensive flooding in eastern Libya preventing the export of a large amount of oil for a number of days a week ago.

War and the virus
The Details

Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

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