This week, Libya‘s oil output has nearly halved as production operations have been scaled back due to a deadlock over control of the country’s central bank.
According to sources familiar with the situation, production has fallen by at least 400,000 barrels per day following an order from authorities in the eastern part of the country to halt all production operations.
The production cuts include the Sarir field, managed by the Arabian Gulf Oil Company, which previously produced 145,000 barrels per day and is now shut down.
Additionally, the oil supply to the Ras Lanuf station has decreased by at least 130,000 barrels per day.
The decision to freeze all production and export activities, announced by the eastern authorities on Monday, comes in response to the internationally recognized government in the West’s decision to replace the central bank governor Sadiq al-Kabir.
This significant reduction in output highlights the ongoing political and economic challenges facing Libya’s oil sector.
Abdel Fattah Abdel Ghaffar, the acting governor of the Central Bank of Libya appointed by the Presidential Council, confirmed that the issues surrounding the bank will be resolved within the next two days, with everything under his control and management.
During a press conference held on Tuesday, Abdel Ghaffar conveyed reassurances to the international community and international institutions, emphasizing that his council operates with standards of transparency and disclosure, aiming to develop and modernize the bank and its operational mechanisms.
He promised that salaries would be disbursed within a day or two, and liquidity would be distributed to banks after reviewing cash balances, criticizing the previous management’s handling of the bank and their failure to smoothly transition responsibilities to the new administration.
Abdel Ghaffar called on the dismissed governor, Saddek Elkaber, to hand over the confidential numbers necessary for disbursing salaries to Libyans and protecting assets and investments abroad, asserting that the new Central Bank board is now an established reality.
