Libya’s oil exports have resumed following the resolution of the Central Bank crisis and the official appointment of new Central Bank Governor, Nagy Issa, who assumed his duties in Tripoli.
The announcement marks a turning point after months of disrupted oil production.
Most of Libya’s oil fields in the east, central, and southern regions have resumed operations, with the exception of the Sharara and El Feel fields in the southwest, which had already been closed prior to the Central Bank crisis in mid-August.
Local authorities in the oil-rich regions have been instructed to allow production companies to resume work, signaling a breakthrough following the agreement between Libya’s House of Representatives and the High Council of State on the new Central Bank Governor’s appointment, which was officially ratified earlier this week.
Hadi Al-Saghir, a representative of the House of Representatives involved in the Central Bank agreement, emphasized that the reopening of closed oil fields coincided with the parliament’s vote on the appointment of the Central Bank Governor in a session held in Benghazi.
He highlighted that the resumption of oil production is crucial for improving national revenues and supporting the government’s ability to undertake essential development projects.
This reopening comes after oil facilities in eastern Libya were shut down, causing a significant drop in national oil production from 1.2 million barrels per day to below 450,000 barrels per day.
According to Libyan Oil Union head Salem Al-Rumeh, the closures cost Libya approximately 850,000 barrels per day in lost production, amounting to around $59.4 million in daily losses.
The shutdown, announced by the eastern-based government in late August, was a response to the ongoing disputes surrounding the Central Bank. Issa Al-Aribi, chairman of the House of Representatives’ Energy and Natural Resources Committee, supported the declaration of force majeure over all oil fields and ports, viewing it as a natural reaction to the actions of the Presidential Council and the Unity Government.
Around 90% of Libya’s oil fields and facilities are located in areas controlled by the Libyan National Army (LNA) under the command of General Khalifa Haftar. These facilities are managed by the government aligned with the House of Representatives, based in Benghazi.
Libya’s economy relies heavily on oil and gas, which account for 97% of exports, more than 90% of government revenue, and 68% of its GDP.
Following the appointment of the new Central Bank governor, Libyan Presidential Council head Mohamed Al-Mnifi reiterated the importance of keeping the Central Bank focused on its technical role, avoiding political interference, and respecting the legal mandates of its board of directors until a new board is agreed upon.
