Summary:

On 3 October 2024, the eastern government in Libya lifted the blockade on the oil fields under its control and ordered the resumption of oil production after a month of shutdowns. The closures of various production facilities followed the unilateral ousting of the Central Bank Governor by the Presidential Council. 

The National Oil Corporation (NOC) stated that production has resumed in oil fields including Sahara, El-Feel and Es-Sider, and exports have restarted. 

The decision to resume regular oil production falls within the agreements reached on 26 September between the House of Representatives (HoR) and the Council of State, and mediated by UNSMIL. 

The newly appointed Governor of the Central Bank, Naji Issa, and his Deputy, Marai Al-Barassi, were officially sworn in during an HoR meeting in Benghazi on 1 October. They are required to appoint a board of directors within two weeks. 

Outlook: 

Resuming oil production and exports in Libya will allow the restoration of normal production rates, thereby restoring a critical revenue stream to both the western and eastern governments.  

Libyan oil exports will also impact the global energy market as Libya normally produces 1.2 million barrels per day.  Libya’s importance as a global supplier prompted the concentrated effort of various international actors to put pressure on the two conflicting governments to resolve the Central Bank issue. 

However, the resolution of the Central Bank crisis does not equate to the resolution of tensions between the parallel governments. Tensions will likely reemerge over the management of oil revenues, as there is no fundamental resolution to the two separate governments still competing for power, money, and influence domestically and abroad.  

The new Central Bank leadership will have to carefully manage these issues as the eastern government is accused of diverting oil revenues to the Libya Development and Reconstruction Fund while the Tripoli-based government is accused of over-spending. 

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