UN concerned over partial shutdown of Libya's oil production, says all parties must ensure equitable resource management

The shutdown of production at Libya's Hariga port and hints of expanding the suspension is a cause for concern as the oil industry remains essential for the country's recovery from a “very costly” conflict, a UN mission said.

Earlier this week, Libya's National Oil Corp (NOC) declared force majeure on oil exports from the Mediterranean port of Hariga, warning that it could extend the shutdown to its other sites. Daily losses due to the closure of the port “may exceed 118 million dinars ($26 million),” it said.

The harsh move was a response to a budget dispute with the Central Bank of Libya, which the NOC claims had been refusing to finance the oil sector for months.

The UN's Support Mission in Libya (UNSMIL) expressed “concern” over the situation in the turbulent North African country in a statement on Thursday. 

“The uninterrupted production of oil as well as maintaining the independence and impartiality of the NOC remains a vital cornerstone to the economic, social and political stability of Libya,” the statement read.

UNSMIL added that it was “incumbent on all parties to ensure that the NOC remains an independent, technocratic, well-resourced institution and to ensure the transparent and equitable management of resources.”

With Libya “only now emerging from a very costly conflict,” money obtained through oil sales are essential for improving the quality of life of the population, the UN body said.

Libya was torn by a bloody civil war for more than a decade as the UN-recognized Government of National Accord (GNA) in Tripoli and the Benghazi-based Libyan National Army (LNA) of Khalifa Haftar vied for power.

With neither able to secure the upper hand on the battlefield, the GNA and the LNA finally signed a “permanent ceasefire agreement” in October 2020. Last month, an interim unity government was formed in order to run the country until the general election in December.

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