Production to re-start from two oil fields in western Libya

Protesters who have been blocking pipelines from Sharara and El Feel oil fields have agreed to reopen them. Oil industry and security officials claim that production could start again within days.

Before the uprising against Gadaffi in 2011, Libya was producing up to 1.6 million barrels per day. While production has doubled since September when eastern oil crescent ports began to export again, it is still just around 600,000 barrels a day. Opening the new fields could boost production by another 365,000 barrels a day.

A faction of the Libyan Petroleum Facilities Guard (PFG) has blockaded one pipeline since November of 2014 and another from April of 2015. A tweet claims an even longer blockade: "The blockade of El Feel was on 31-May-2013, Elshara on 25-June-2013 Both by Zintanis. Jadran blocked terminals after July-2013". Jadhran blocked ports in the east. The group said it had agreed to unblock both: "The National Oil Corporation should start its work as soon as possible and we, as the Petroleum Facilities Guard, pledge to protect and defend the wealth of the Libyan state." The western section of the PFG is not headed by Ibrahim Jodhran who was head of the eastern PFG until the oil crescent ports were seized from him by troops loyal to eastern commander Field Marshal Khalfa Haftar. Indeed, the western faction are allied with the Libyan National Army (LNA) commanded by Haftar. The area is secured by the Zintan brigades. Idris Madi, who heads the LNA commander center at Zintan said the blockade should be ended by Thursday.

As mentioned, the PFG faction is aligned with the self-styled Libyan National Army (LNA), a force based in eastern Libya. Its statement was confirmed by the office of Idris Madi, head of the LNA's command center in its western outpost of Zintan. Madi's office said the blockade would end by Thursday. The National Oil Company(NOC) based in Tripoli also confirmed that a deal had been made. However, it noted that similar deals in the past had fallen through. No details were released of the agreement.

A refinery at Zawiya and a complex at Mellitah were readying for a restart. They receive oil from the two fields. A spokesperson for the NOC said that both places had been preparing to restart production and that work to resume delivery of oil was also taking place in the fields. Production would only gradually increase. However, the NOC said that it hoped to reach a goal of 900,000 barrels a day soon and 1.1 million barrels next year. However the NOC needs new funds for its operating budget as well as ending of blockades before it could reach its goal.

The Libya Observer reports that the Rayayna Patrols Brigade of the PFG had reopened the Rayayna oil pipeline on Wednesday after they were instructed to do so by the western operations room of Khalifa Haftar's LNA. The pipeline feeds oil from the Al-Sharara and Al-Feel fields into the two main western oil terminals. The Observer speaks of the brigades as Zintani armed groups. Mustafa Sanallah had filed a lawsuit last October against the militia. He claimed that closure had lost Libya over 27 billion dollars in revenue. Khalid Shakshak said last November that reopening of the Rayayna pipeline to resume pumping oil through it would solve 70 percent of Libya's economic crisis.

However, there is as yet no sign of any solution to the political crisis with the eastern government of the House of Representatives (HoR) and its armed forces commander Khalifa Haftar having control of most of Libya's oil resources. There is no information as to how oil revenue is being divided. However, the UN-backed Government of National Accord (GNA) complains that it is not receiving sufficient funds from the Central Bank in a timely fashion to pay for essential services.

UPDATE: There is already a problem with the El Feel field, with guards their rejecting the agreement apparently.

Libyan National Oil Company pleads for more funding to increase production

Mustafa Sanalla, head of the Libyan National Oil Company (NOC), has used the two-day meeting in London on the economic crisis in Libya to push for access to $2.5 billion funding he claims is needed for new investment to increase production.

Every time it needs funds, the NOC has to go to the government rather than having its own funds. The system, also used during the Gadaffi era meant that at times the NOC even defaulted on international loan payments since the finance ministry did not make the necessary funds available.

Sanalla claimed that three conditions needed to be met before the NOC could reach oil production of 800,000 barrels per day and 2,750 million cu. ft. of gas per day: “First, the ports and pipelines that are currently open must stay open; second, the blockade of the Riyayna pipeline [currently interdicted by the Zintanis] must be lifted and third, NOC’s budgetary requirements must be met.” Sanalla said that the NOC had to have free access to part of the income from oil and also have the power to borrow to fund itself. Sanalla has taken the opportunity of the London meeting that started yesterday to make his point.

Sanalla claims the production he projects plus revenue from petrochemicals and oil products would generate revenue of $15.847 billion if oil is at $45 per barrel. He also claimed that the 2017 budget of $2.5 billion would return $4.125 in extra NOC revenues and this would be carried on into future years as well. He warned that if the NOC did not get the budget it needed, oil production would level off at 520,000 barrels per day generating $11.72 billion. Since four main eastern ports were seized by Field Marshal Haftar he has allowed the NOC to export from them. Production has increased from around 290,000 barrels a day to around 590,000 barrels a day now. However, this is still far below the 1.5 million barrels per day before the head of the Petroleum Facilities Guard, Ibrahim Jadhran blockaded the ports, which Sanalla claims cost Libya $100 billion.

Sanalla fails to mention that Jadhran had agreed to support the GNA and had an agreement with the government to allow exports but the deal was sabotaged when Field Marshal Haftar seized the ports. Even though Haftar does not support the GNA, as did Jadhran, he has allowed the NOC to export oil. Sanalla was quite critical of the deal with Jadhran and of UN envoy Martin Kobler who had helped broker it.

The Presidency Council(PC) headed by Faiez Serraj has had problems getting the necessary funds to allocate sufficient cash to run government operations including increased funding for the NOC. This has soured relations with the Central Bank governor Saddek Elkaber. The Italian foreign minister Paolo Gentiloni, said at the London meeting that he saw “a glimmer of hope in finding in finding a compromise to break the stalemate between the Libyan government and the Central Bank and put the necessary resources in the heads of the head of the government Faiez Serraj as he tries to consolidate economic and political stability”.

Serraj has been particularly critical of Elkaber for his failure to help the liquidity shortage and allowing the value of the dinar to fall. In return, Elkaber said that Serraj lacked any economic policy and was leading the economy to ruin. Gentiloni said that as well as the lack of liquidity in the banking system, another problem was that employees were not being paid. He said that getting a grip on finances would help the GNA restore infrastructure, particularly for the increase in production of oil and gas.

The London meeting was panned by Ali Gatrani, a member of the PC and supporter of Haftar, who said the London meeting was "a conspiracy designed to impose the will of outside governments on Libya". Gatrani pointed out that the House of Representatives(HoR) was the legislative body of the GNA and the fate of the state budget was in its hands. He also maintained that the PC had been inquorate at its meetings since they were not always attended by the chair and all five deputies as required by the LPA. While the HoR is the legislature of the GNA, it takes on that role only when it votes confidence in the GNA as required by the LPA. The LPA is the Libya Political Agreement. Last August 22 the HoR voted against the GNA and there has been no vote of confidence in the GNA since then. At present, the High State Council claims that it is the legislature of the GNA for now even though by the LPA it is mainly an advisory body.

General Haftar beats back counter attack on Libyan oil ports and advances towards Sirte

Forces of the Petroleum Facilities Guard(PFG) headed by Ibrahim Jodhran, retreated from Es Sidra and Ras Lanuf just a few hours after having retaken them from General Khalifa Haftar's Libyan National Army (LNA) forces.

The counter-attack was repulsed with air attacks that appear to be by foreign airplanes. The PFG accused Egypt and the UAE of carrying out the bombings. They said four PFG fighers were killed. Defence Minister Al-Mihdi Al-Baraghati said: “There are strong indications that UAE and Egyptian warplanes have bombed PFG forces in Ras Lanuf and Sidra, we are now making sure of these indications”.

Mohamad Ibset, a spokesperson for Haftar's forces confirmed that there had been a counter-attack by the PFG at least on Ras Lanuf but did not mention El Sidra that the PFG also claim to have attacked. Spokesperson for the PFG, Ali al-Hassi claimed: “We attacked Al-Sidra and Ras Lanuf, and Haftar’s forces are trying to hit us with their warplanes.” The clashes halted the first loading of oil cargo from Ras Lanuf since 2014. Haftar had agreed to turn over the ports to the Tripoli-based NOC as long as the NOC lifted the force majeure covering the ports so that oil could be exported.

There is a merger between the two rival national oil companies (NOC), the one based in Tripoli associated with the GNA and the other in Bayda associated with the HoR government. The merger was not completed as the HoR rejected it but negotiations between the heads of the two NOCs are to continue this week. Meanwhile Haftar appears to have accepted the Tripoli NOC for now. Unlike the PFG who accept the GNA and had a deal with them to export oil, Haftar does not recognize the GNA.

Haftar's forces were not content just to repel the counter attack. They have advanced to take control of towns further to the west that PFG forces had captured earlier from the Islamic State. A tweet claims: "#Libya army 101 Brigade takes control of Bin Jawad from Ibrahim Jadran's forces." However, Haftar's forces are advancing even further west towards Sirte with another tweet claiming: "Some PFG units to hand themselves and arms to LNA in Harawah, after local tribesmen guarenteed them a just trial." Another tweet says: "Reports that pro haftir forces have entered Ben Jawad and heading westward to harawa about 70km east of sirte" . A later tweet announces that Harawa was captured: "Harawa announced as under control of LNA , 40 PFG members taken in custody." A final tweet sounds an ominous note: "Col. Mo bennayel from east sirt We r ready to invade Misrata&liberate sirt from its militia any time " Haftar's Libyan National Army (LNA) forces are within striking distance of Sirte. The silence of the UN, its envoy Martin Kobler, and the GNA on this lightning advance of Hafter to take territory formerly under the control of forces loyal to GNA, is striking.

Libyan National Army and Petroleum Facitilies Guard may clash at oil port

There are conflicting reports about the intentions of the Libyan National Army forces which the other day entered the town of Zuetina just 10 kilometers or six miles from the oil port.

A headline in the Libya Herald claims that Major General Abdul Al-Nazhuri of the Libyan National Army (LNA) predicts that the LNA will take over terminals at Zuetina, El Sidra, and Ras Lanuf. A battalion of the LNA entered the town of Zuetina yesterday. General Khalifa Haftar is commander in chief of the LNA, the armed forces of the House of Representatives (HoR)) government.

The three ports are under the control of the Petroleum Facilities Guard (PFG) headed by Ibrahim Jadhran a foe of Haftar. Jadhran supports the UN-backed Government of National Accord (GNA) and recently signed a deal with them to reopen the ports for export. However, Haftar does not recognize the GNA. He will no doubt not allow the export of oil until there is an agreement satisfactory to him. There is supposed to be an agreement between the rival eastern-based and Tripoli National Oil Companies (NOCs) creating one merged oil company but the HoR government will not accept the deal until changes are made. That does not seem to have happened yet. The HoR is demanding that any tankers exporting oil should have permits from the eastern NOC.

In a recent article, Jason Pack, points out that Martin Kobler, UN envoy to Libya, fails to note that part of the reason that the GNA is losing support is that he has failed to implement the flawed plan of former UN envoy Bernardino Leon, the Libyan Political Agreement (LPA). He accuses Kobler of sticking to the letter of the LPA rather than realizing that it was meant to bring the two key power blocs together but had failed to do so. Kobler has not stuck to the letter of the LPA but has violated it in a number of different ways first and foremost by activating the GNA before a formal vote from the HoR. But Pack is correct that following the LPA has so far not resulted in bringing the two power blocs together. It is difficult to see how it can. The LPA demands that the Presidential Council (PC) of the GNA be commander in chief of the new GNA armed forces, while Haftar wants to remain as commander in chief. He will not accept a government with Islamist opponents in it and will not accept being under the command of the PC.

The division between the LNA and GNA is exemplified in the threat of clashes between the PFG and Haftar forces over the oil ports in the oil crescent. Haftar is trying to take support from Jadhran and by doing so weaken the power of the GNA in the east. He already has control of feeder oil fields giving him considerable leverage over any attempt of the GNA to export oil without his and HoR approval.

Final victory for the GNA over the Islamic State in Sirte is likely to result in conflict between militia that are for and those against the GNA. He points out that there is already conflict between militias in Tripoli as reported recently in the Digital Journal.

The Tripoli Revolutionary Brigades have attacked intelligence headquarters of the GNA and apparently seized personnel. There has not been a word from the GNA or the UN about what has happened even though the same militia took over other ministry buildings earlier. It is possible IMHO that some militia now fighting the Islamic State in Sirte will move to help defend the PFG against Haftar if there are clashes over the ports. Pack suggests that the victorious militia in Sirte could "defy GNA rulings and expose the fact that the GNA is not actually a unity of anything."

Reuters reports that Abdulrazak al-Nazhuri the chief of staff of Haftar's LNA said:"We have said that in the event that permission is not sought from the National (Oil) Corporation that answers to the (eastern) parliament, we will target the ships with our air force as we deem them militias or smugglers. The goal is not to threaten any nation but to protect the Libyan people's assets."This is a clear threat to the GNA and its agreement with the PFG to begin exports. Nazhuri said that the LNA would enter the ports of Zuetina, Es Sidra, and Ras Lanuf. All three are occupied by the rival LFG under Jadhran. Nazhuri said: "Our entry into the ports is to protect them, not to occupy them or to be substitutes for the mercenaries or thieves who preceded us." Instead of marching on Sirte as he originally promised, Haftar seems to have decided that instead he would secure oil fields and now ports controlled by the PFG. So far outright clashes between the PFG and Haftar forces have been avoided but it is not clear that this situation can last very long.

Tension grows in Libya over control of oil crescent oil export ports

The 153 Infantry brigade of General Haftar's Libyan National Army (LNA) entered into the town of Zuetina on August 14th but stopped short of entering the oil terminal controlled by the rival militia of the Petroleum Facilities Guard (PFG)

The PFG is headed by Ibrahim Jadhran an opponent of Haftar. Jadhran supports the UN-backed Government of National Accord (GNA) and has reached a deal with the government to open several oil ports including Zuetina. Haftar does not recognize the GNA nor its armed forces. According to a Libya Herald report there was a long four-lane-wide convoy with associated military and civilian vehicles that moved slowly into town. Photos are shown with the report. There were no reported clashes with the PFG. Recently, the French, Italian, Spanish, UK, German and U.S. governments all issued a statement warning that they were worried about increasing tensions at Zuetina.

The NOC in Tripoli told Reuters that the GNA will need to allocate funds to repair damage to infrastructure at some of the ports before plans to increase production by five-fold by the end of this year can be realized. Chairman, Mustafa Sanalla said: "If we receive around $1 billion, we can do a lot." However, without agreement with stakeholders such as Haftar and tribes loyal to him who control oil fields adjacent to the oil crescent ports such Es Sidre, Ras Lanuf, and Zuetina, there will be no oil exported. Now it seems that Haftar may be moving to take control of the ports themselves from his PFG opponents. This would give Haftar and the House of Representatives (HoR) government even more leverage in negotiating with the GNA.

A recent tweet suggests that conflict could arrive soon: Unconfirmed #Reports Hafter gangs intend to attack #zwitina oil port next few hours @UNSMILibya @KoblerSRSG" As of the morning of August 14th there are no reports of clashes between the two groups as yet. The entry of the battalion into Zuetina was also announced by another tweet: " #Libya : 153th battalion of #LNA entering today in #Zueitina, 155km south of #Benghazi."

An earlier report claims that a member of the PFG was killed while driving a car with another fighter on an official mission. The PFG said that the shots came from Dignity Operation gangs. Dignity Operation was begun by Haftar in May of 2014 to clear Libya of any Islamists Haftar considers his opponents. Another fighter was injured in the confrontation and a third kidnapped.

The incident was apparently in the city of Ajdabia. The statement of the PFG read: “Dignity Operation is trying to repeat Benghazi’s atrocious scenario in Ajdabia and this incident could be the prompter of a never-ending conflict in Ajdabia. PFG is at the top level of self-constraint so that it does not get drifted into any conflict or division.” The conflict between the PFG and Haftar forces has grown since Haftar's militias now control the region's oil fields. They appear to intend on controlling not just the oil fields but now the ports.

According to the Libya Herald there has long been tension between locals and the PFG and the locals have been incensed that outsiders have shut down the port from time to time. However, Haftar may not be welcome either as he will insist on not exporting oil until he and the HoR government have an agreement satisfactory to them. The export terminal is a key employer in the town. Three years ago the locals became so upset with disruption by outsiders that they actually stormed the port and forced it to resume operations.

General Haftar trying to oust his opponents in Libya

General Kahlifa Haftar commander in chief of the Libyan National Army (LNA) associated with the Tobruk-based government of PM Abdullah al-Thinni has completely broken off relations with the defense minister of the Government of National Accord (GNA).

Although  Al Mahdi Al-Barghathi joined Haftar's Operation Dignity, he is an opponent of Haftar who objected to his becoming defence minister in the UN-backed GNA government. Haftar opposes the GNA and its armed militias. Al-Barghathi is also an ally of Ibrahim Jadhran head of the Petroleum Facilities Guard who also supports the GNA. Jadhran has recently reached an agreement to open a number of exporting ports with the GNA.

As commander of the 204 tanks brigade, Al-Barghathi was quite popular among his troops as a commander who joined them and led them into battle. However, Haftar has now broken off all relations with him and renamed the 204 tanks brigade to the 298 tanks brigade. He appointed Abd Al-Karim Barghouti as the new leader. As well as indicating an attempt to consolidate power in the east, the move represents an escalation of the conflict between the GNA with Haftar and the House of Representatives (HoR) government. Al-Barghthi had earlier been the target of an unsuccessful assassination attempt.

In what may be part of a propaganda campaign. Ahmed al-Mesmari, spokesperson for the LNA accused the US air force bombing the Islamic State in Sirte of hitting vehicles belonging to forces allied with the GNA by mistake. Neither the US nor the GNA have commented on the accusations. Al-Mesmari claimed that Sirte would be liberated by the LNA and not by the US or any other country. However, after announcing a march on Sirte ages ago, the LNA avoided any clashes with the IS in the Sirte area. It is still fighting the remnants of the Benghazi Shura Council fighters in Benghazi and lately also the recenty formed Defend Benghazi Brigades west of Benghazi. He also is carrying out a siege of Derna, Operation Volcano,. against the Derna Shura Council of Mujahideen. The Council fighters had earlier this year been instrumental in expelling the Islamic State from Derna their former stronghold.

The PFG under Ibrahim Jadhran are reported to have repelled an attack by Haftar's forces on Zuetina oil port, about 180 km south west of Benghazi. Haftar had appointed Muftah Shagloof who led the attack as head of the PFG according to Chief of Ajdbiya Borders' Guard, Bashir Bodfairah. Bodfairah explained that the port was attacked because Haftar refuses to resume oil exports through the GNA. LNA troops are said to be just 12 kilometers east of Zuetina. Apparently, Shafloof has been given the task of occupying oil ports in the oil crescent region as well as the oil fields in Wahat, Maradah, and Zallah regions. The conflict between supporters of Haftar in the east and his opponents who support the GNA appears to be escalating.

Libyan National Oil Company hopes to boost oil production

The National Oil Company (NOC) welcomed the announcement of the Presidency Council (PC) of the unconditional opening of several eastern oil ports by the Petroleum Facilities Guards (PFG), led by Ibrahim Jadhran.

The oil ports to re-open are Ras Lanauf, Es Sidre, and Zuetina. The NOC also said it was "announcing a new initiative to end the use of oil blockades as a political tool."

The NOC also revealed that in a phone call with its chairman Mustafa Sanalla, Musa Koni, the Vice-President of the PC claimed that the PC "had not paid the Petroleum Facilities Guard to open the ports. The only money paid to the PFG was for overdue salaries." Even if this is true, and we cannot be sure since the agreement details have not been released, some critics claim that the number of employees working for the PFG is greatly inflated. It is unlikely that Jadhran would agree to re-open the ports unless he were given some monetary incentive to do so.

After the deal was reached with Jadhran in Ras Lanauf with the help of the Special Representative of the Secretary-General SRSG), Martin Kobler, Sanalla had written a blistering letter to him criticizing the deal and virtually calling Jadhran a deceiver and crook. Jadhran fired back calling Mustafa's letter worthless. Jadhran appears to have won. It is now as if no dispute ever existed. Sanalla said:“I am pleased the Presidency Council agrees that we cannot reward individuals who hold Libya’s oil hostage.There can be no back room deals if we are to build trust. I call now on other groups that are using the blockade as a tactic to let Libya’s oil flow freely. In the West of Libya, 400,000 b/d of production is shut in at the Sharara and El-Feel fields”.

Sanalla claimed that it now appears that the PFG has understood the costs of a blockade are not only to the nation but to the blockaders themselves and that a blockade does not benefit anyone. At the very least, the blockade ensured that the PFG has their back salary demands met. Other blockaders, Sanalla claimed, must also understand that blockades do not benefit anyone. Of course they do, if the government gives in to the demands of the blockaders, to ensure that there are oil exports.

There is no mention of the fact that the agreement between the rival NOC's one in the east and the other in the west to merge, seems not yet to have been ratified by the HoR which has demanded changes to the agreement. Nor is there any mention of the fact that important groups have not given up on being part of any agreement before oil is allowed to flow. The tribes and their Council who control oil fields feeding into the oil crescent oil ports demand the NOC negotiate with them and have the approval of the HoR government. The Libyan National Army is demanding that any tankers intending to export oil should have a permit from the eastern-based NOC. The joint NOC is not even mentioned.

Sanalla welcomed the PC decision to budget money to the NOC to raise production, claiming it will enable the NOC to boost production up to 900,000 barrels per day by the end of this year. Sanalla said:“Now we will begin working with the Presidency Council and the Energy Committee of the House or Representatives to restart exports from the ports that were closed and from the fields that supply them. We need to be clear there are still big military, political and legal obstacles that must be resolved”, he warned...In the spirit of national unity, we urge the tribes and the municipalities in the oil-producing areas all over Libya to cooperate and join our commitment to let Libya’s oil flow freely. Libyan oil is for all Libyans”.

Notice that Sanalla contemplates working with a committee of the HoR. The NOC is in effect recognizing a government other than the PC and GNA. The UN warns against anyone working with parallel institutions rather than the GNA but this does not seem to apply to institutions of the GNA themselves.

Jadhran said that the terminals could be working again within a few days. This must surely be on a very limited basis as Es Sidre and Ras Lanauf tank farms and infrastructure have been severely damaged first by former Salvation government's Libya Dawn forces in February 2015 and later by the Islamic State.

Head of Libyan National Oil Company condemns deal to open oil ports

- An agreement between UN envoy to Libya Martin Kobler and Ibrahim Jodhran, head of the Petroleum Facilities Guard (PFG), has been denounced by the chair of the National Oil Company (NOC), Mustafa Sanalla.

Last Thursday, Kobler, Special Representative of the Secretary-General, met with Jodhran. As the Libyan Herald reported: "Kobler appeared overjoyed to meet the controversial PFG leader whose regular closure of export terminals from 2013 onwards cruelly demonstrated the powerlessness of the-then Ali Zeidan government in Tripoli." In spite of losing several billion dollars in export revenue by his extended closing of the ports in order to get a better deal from the government, Jodhran's support of the GNA and pledge to help export more oil has been welcomed by Kobler. Kobler, the GNA, and international oil companies are anxious that Libya increase its production and export of oil. Jodhran is an opponent of General Khalifa Haftar who opposes the GNA and supports the HoR and the Al-Thinni government. The agreement details were not released but are said to have included salaries for the guards.
In a letter to Kobler, a copy of which was obtained by the Libya Herald, Sanalla said he was dismayed at Kobler's meeting with Jadhran, whom he claimed had cost Libya "over $100 billion in lost revenues."He lashed out at Kobler: ‘’For you to associate yourself and the United Nations with one of most despised individuals in the country will severely tarnish your reputation, and that of the United Nations. Your job in future will not be made easier by this step’’. He also said that recognition of Jadhran set a bad precedent in that everyone who can muster a militia will be encouraged to shut down a pipeline, an oilfield or port to see what they can extort. This ignores the fact that Libya already faces the situation that Sanalla describes.
Sanalla complains that Jodhran was malevolent and was only motivated by what was good for Jathran. This description probably applies just as well to other stakeholders in the Libya oil patch. After the Kobler agreement, the tribes associated with the oil fields that feed into Jodhran's ports of Ras Lanauf and Es Sidre, noted that the agreement did not represent them and their agreement was needed. They, just as Jodhran, want their cut of the oil revenues. The tribes and their Council support the rival HoR government rather than the GNA.
The tribal objections were underlined by statements from the Commander of the Marada Operations Room who said that they will not allow crude oil to be pumped to the ports which are under the control of armed guards headed by Jodhran. The commander said the oil fields were under control of the HoR and its commander in chief Khalifa Haftar.
That a UN official should make a deal with Jodhran rather than the GNA through the NOC is astonishing in the first place. That Kobler should also ignore the fact that the fields which supply the ports are held by those who do not even recognize the GNA is even more astonishing. The obvious anger evident in the NOC chair's letter is not in the least bit surprising.
Sanilla warned that in order to avoid legal claims it would not lift force majeure, and that if UNSMIL or the GNA supported Jadhran they could be liable in courts. The entire letter to Kobler can be found here.
Sanilla even threatened that the NOC might refuse to recognize the Presidency Council if events kept on as they have been.
Sanilla makes no mention of the recent agreement to merge the two rival NOCs one based in Tobruk and the other in Tripoli. The HoR government has rejected the deal and will not accept it until certain demands are met including agreement on the division of revenues. There seems to be little in the press as to what if anything has happened in terms of getting the agreement of the HoR to the merger. This is just one more problem to be solved before Libya can hope to improve its oil production and exportation to any significant degree.

Tribes who control oil fields feeding oil crescent ports demand they be part of any export agreement

Tribes who control eastern oilfields said any agreement between Ibrahim Jodhran, head of the Petroleum Facilities Guard (PFG), and UN envoy Martin Kobler to reopen oil exporting ports does not cover their areas of oil production and pumping.

Yesterday, Special Representative of the Secretary-General (SRSG) Martin Kobler flew to the eastern oil port of Ras Lanauf to meet with Jodhran. Kobler appeared happy to meet with him since he supports the UN-backed Government of National Accord (GNA) and would like to see the oil ports he controls exporting oil once again. Jodhran cost the Libyan economy billions by keeping the ports closed for extended periods over disputes with the government for better terms.

In 2013, Jodhran set up a Cyrenaica government with its own cabinet. He also established a separate oil company and tried to export crude oil through the company. The tanker Morning Glory was intercepted by the U.S. and its cargo unloaded in the western part of Libya. Few details were given of the talks but Kobler welcomed Jodhran's backing of the Presidency Council (PC) and the GNA. Jodhran is a strong opponent of the commander of the Libyan National Army (LNA), Khalifa Haftar. The LNA is the armed forces of the House of Representatives (HoR) government of PM Abdullah Al-Thinni.

The tribes who control the eastern oilfields have formed a Supreme Council for the Wahat Oil, Gas and Water Basin areas. The UN, the international community, and the GNA are anxious to quickly ramp up Libya's oil production and exports. Kobler met Jodhran to further arrangements to open the Ras Lanauf and Es Sidre ports that the PFG control. Increased exports would generate badly needed revenue for the GNA. There was an agreement reached between the two rival National Oil Companies (NOC) to merge, but the HoR government has rejected the deal unless certain conditions are met.

However, opening the ports will be of little use unless there is a steady supply of oil coming in from the Wahat Basin fields. Kobler had mentioned that the recent Tunis talks with Libyan Dialogue members had focused on people's concerns and those included oil production. Kobler tweeted: "Glad to hear support of #PC/#GNA from Ibrahim Jadhran and tribal leaders. #RasLanuf #Libya " The tribal leaders that Kobler mentions obviously did not include those from the Supreme Council of those tribes who control the oil fiellds supplying the ports.

Jonathan Winer, the U.S. special envoy for Libya, tweeted that Libya needed to pump oil to generate revenue that could pay salaries. UK ambassador Peter Millet told a UK House of Lords committee at the end of June that the plan was for Libya to increase production from less than 200,000 barrels a day now to around 700,000 barrels a day. This is still considerably less than production just before Gadaffi was overthrown, which was about 1.5 million barrels a day. However, as Millet notedthe main obstacles to increased oil production were not technical but political and asked significantly " are people in control of pipelines ready to permit it ...and at what price.?

A statement from the Supreme Council makes clear the relevance of Milltet's remark. It said that "any political agreement between the UN Representative Martin Kobler with any armed groups regarding the commencement of oil exports is a non-agreement and does not represent the Basin area and its inhabitants and does not represent an agreement to restart of production from the oilfields situated within the area of the (seven) Wahat Basin." The statement went on to say that the Council would not be committed to any agreement reached without its own knowledge and consent.

The Council also demanded that any agreement must have the permission of the Al-Thinni government of the HoR and the eastern National Oil Company associated with the HoR. There is no mention of the agreement between the two rival oil companies to merge or of the new merged oil company. Just to make the need for the Council to be involved absolutely clear, the statement went on to say that those controlling the export terminals do not in any way represent the production, manufacturing and pumping areas. The statement concludes: ‘‘If Mr Kobler wishes to talk about the restart of Libyan oil production, he has to communicate with the Supreme Council of the Basin’.’

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Rival eastern oil company in Libya tries to ship oil illegally

The Al-Thinni government of the Tobruk-based House of Representatives (HoR) is planning to export 650,000 barrels of crude that were pumped from the Messia and Sarir oil fields at Hariga port in Tobruk.

According to Omran al-Zwai of the Arabian Gulf Oil Co. tanker Distya Ameya is due to sail on April 25 to Malta. The cargo was sold to DSA Consultancy FZC, a company that is based in the United Arab Emirtates (UAE) according Nagi Elmagrabi, who heads the breakaway National Oil Company in the east. The internationally recognized National Oil Company is based in Tripoli and is cooperating with the UN-brokered Government of National Accord (GNA). International traders such as Glencore deal with it.

Three of the main oil ports in the east are guarded by the Petroleum Forces Guard led by Ibrahim Jodhran. He supports the GNA and would export through the Tripoli-based NOC. He does not control the Hariga port however. General Haftar the commander in chief of the Libyan National Army of the Al-Thinni government, no doubt wants the HoR to export oil so as to provide funds for the Al-Thinni government. Funds can be deposited in a separate branch of the Central Bank of Libya under control of the HoR. Ironically, Jodhran himself has tried to illegally ship oil by a tanker called the Morning Glory and also supported the eastern oil company before deciding to support the GNA and Tripoli NOC. He is a bitter foe of General Haftar.

A few days ago, the Tripoli NOC issued a statement on the situation saying that they had notified the Presidency Council of the GNA of the attempt by the Al-Thinni administration to illegally ship oil: Musfafa Sanalia NOC chairman said:“Agoco, our subsidiary in the east, was instructed yesterday by a Beyda official to load a ship at Marsa el-Hariga, I notified Prime Minister Serraj and the Presidency Council, who understood immediately the seriousness of the issue and took the necessary steps to stop the vessel from loading. Agoco employees and port officials understood this was a political attempt to divide the country, and I am very proud that they resisted the pressure to load this vessel. This had the potential to be a very ugly incident and I am pleased that it has been resolved peacefully without injury to anybody or loss of revenue or damage to the integrity of NOC or the country.”

Sanalia pointed out that the attempted export breached United Nations Security Council resolution 2278.

Sanalia said the NOC had been in contact with the captain of the ship and informed him that he is breaching the UN resolution. The NOC asked him to leave Libyan waters immediately. In response the captain turned off the ship's tracking system. It seems that the ship may be loaded and ready to set sail. A recent tweet says: "Chairman of NOC East confirms 1st crude oil shipment from #Tobruk's Hraiga port. distant pic of the tanker". It is quite possible that the tanker may be intercepted by the US or Italian navy.

Before the 2011 overthrow of Gadaffi, Libya pumped about 1.6 million barrels of oil a day. It now produces only 361,000 barrels a day.

The illegal export of the oil is a serious challenge to the UN and the GNA. The eastern branch of the Libyan National Bank is also planning to print its own banknotes. A recent article by Richard Galustian in the Times of Malta, suggests that Libya could be headed for a breakup between the west and the east. Significantly, Russia has refused to recognize the GNA until a vote of confidence from the HoR. There could be a conflict developing between western supporters of the GNA and supporters of Haftar and the HoR including Egypt, the UAE, the Arab League and now it seems Russia.

Haftar planes continue to attack Derna after Islamic State retreats

After the Islamic State retreated from the outskirts of Derna, warplanes of Khalifa Haftar's air force are still carrying out strikes on the city.

The Libya Observer reports that three have been killed and others injured as the planes hit civilian targets according to a source within the city. Two airstrikes were conducted on Saturday, one hitting a brick factory and a second the southern entrance to the city. On Friday warplanes carried out a total of eight airstrikes on different locations occupied by revolutionaries. Derna is ruled by the Shura Council of Derna Jihadists.The group is largely responsible for driving the Islamic State out of Derna although the LNA did engage against the IS before they retreated. Pro-LNA and Haftar sources, often repeated by mainstream media, attribute the success to the LNA. There is no mention of the fact that the revolutionaries drove out IS from most of the city ages ago. The problem for western media is that the Council includes members associated with Al Qaeda so they must be bad guys. However, the former rival "Salvation" government in Tripoli were allies to the Council as they were with the Council in Benghazi. Some members of the GNA have the same perspective on events. The Observer claims that this is the third time that Haftar-associated warplanes have targeted revolutionary locations since Derna was freed from IS militants.

It may be that Haftar may be intending to move his own troops into the suburbs of Derna just abandoned by the Islamic State. Consider this tweet:: "Khalifa Haftar militias give 24h to Fatayah residents in Derna to leave before destroying the region by airstrikes." Most western media are paying no attention to what is happening. All attention is on an attack by the Islamic State south of Brega.

Even Reuters manages to have a report on the attack. The attack was south of the Brega oil terminal. One guard was killed and five others injured including Ibrahim Jathran, leader of the Petroleum Facilities Guard (PFG), according to security and medical sources. The article notes that the PFG is one of the groups supporting the UN-brokered Government of National Accord (GNA). The article fails to mention that Jathran is also at odds with General Haftar who does not support the GNA as yet. Basheer Bu Thefeirah, commander of the Ajdabia border sector, said that the attackers came from both the east and the west and were attempting to storm Brega but were blocked by the PFG. Note that the Haftar's Libyan National Army and warplanes did not help against the Islamic State. They were busy attacking newly-liberated Derna.

Oil ports in eastern Libya may reopen

After being closed for a year, three eastern Libyan oil ports are now set to re-open. The positive development for the oil industry is taking place as the UN-brokered Government of National Accord (GNA) consolidates its power in Tripoli.

The Wall Street Journal reports that militia officials have announced the re-opening. Ali al-Hassi, spokesperson for the Petroleum Facilities Guard(PFG) said: “We are planning to reopen the ports. It’s under the control of the unity government now.” Ironically, the ports were closed after Ibrahim Jodhran or Jadhran head of the PFG militia refused to load any ships that were not registered with the rival National Oil Company of the Tobruk-based House of Representatives (HoR). Now the Tripoli-based neutral National Oil Company is cooperating with the GNA and has apparently broken off any relationships with the rival General National Congress (GNC) based in Tripoli. The three ports are Es Sider, Ras Lanuf, and Zuetina. The GNA confirmedthe re-opening was planned:

Mr. Sarraj’s cabinet, called the Government of National Reconciliation, confirmed on its Facebook page that the “guards [protecting] the installations had agreed to open ports and work immediately” under its control.Faiez Serraj is the Prime Minister of the GNA.

The oil facilities are not guarded by the Libyan National Army(LNA) under commander in chief Khalifa Haftar but by Jodhran's militia group. Jodhran is an opponent of Haftar. When the oil facilities were under attack by the Islamic State, the Libyan National Army did not help defend the facilities. It was left solely to the PFG. The only air support against the IS came from the opposing GNC government.

Jodhran was named commander of the PFG in 2012 after the overthrow of Gadaffi. He became unhappy with the central government, accusing it of corruption and incompetence. He demanded more autonomy for the eastern Cyrenaica area:In 2013, Jadhran set up the Cyrenaica Political Bureau and secured control of eastern ports, namely Sidra, Ras Lanuf and Zueitina.[3] In August 2013, Jathran issued the “Ras Lanuf Declaration”, the declaration asks for the right to “govern our own affairs”.[1] By October 2013, Jathran’s militia , the Cyrenaica Self-Defense Force, was estimated to number 17,500 men.[1]In 2014, Jodhran attempted to illegally sell oil excluding the central government and National Oil Company. The MV Morning Glory was loaded with crude at Sidra and evaded a government blockade. US forces took control of the ship on March 16, 2014 and returned it to the central government. U.S. Ambassador at the time, Deborah Jones, said that Jodhran's action were a "theft from the Libyan people."

Jodhran now supports the GNA and pledges to open the ports. His separatist leanings appear to have disappeared for now. In spite of trying to steal oil and costing Libya billions in lost exports and production he has been transformed into one of the "good guys". While the GNA appears to be gaining support in the west and to some extent in the south, the situation in the east remains uncertain. While the GNA has the support of Jodhran there is not a peep out of the HoR. Haftar will not be pleased with the actions of Jodhran. At present, there is a meeting going on in Marj where Haftar has his headquarters:"‏@LibyaschannelEN Meeting of #GNA critics in #Marj today w/ boycotting deputy PM Ali Gitrani, members of HoR's Sovereignty bloc & some eastern mayors: sources "Haftar could be planning for the HoR to hand over power to a military tribunal. This would be risky. The UN would not recognize the tribunal and he would need to seize the oil ports in order to finance his new Libyan government. If he did decide to do this there could be fighting in the west as well between militia loyal to Haftar and those loyal to the GNA. If the GNA allows Haftar to remain as head of the Libyan National Army, the GNA will implode as Islamists within the GNA rebel or leave.

Khalifa Haftar's forces claimed to have been responsible for some kidnappings and torture in eastern Libya

General Khalifa Haftar's forces are claimed to be behind some kidnappings and torture in eastern Libya. Haftar is commander in chief of the Libyan National Army (LNA) associated with the internationally recognized House of Representatives (HoR).

The Libya Observer, a source often favorable to the rival General National Congress (GNC), reports that rescued prisoner Othman Bu Khattabia, an elder from the Obidat tribe, claimed:

"They mistreated me and beaten me up, I was psychologically destroyed...They are militias from the so-called the General Command in Al-Marij and the so-called Haftar..All the abducted citizens in Tobruk are in so-called Haftar's prisons, the so-called army prisons."

Khattabia was abducted from central Tobruk two weeks ago by an armed group loyal to Haftar. Khattabia opposes Haftar's Operation Dignity launched in May of 2014 to rid Libya of all Islamists, including those associated with the GNA and allied militias.The ongoing operation to a considerable degree started the ongoing conflict between rival governments, and included burning the parliament in Tripoli. Obidat's armed tribesmen managed to find out that Khattabia was detained in Suluq, about 53 kilometers southeast of Benghazi, and were able to set him free. Khattabia said his captors said they were from the Libyan Army and accused him of collaborating with Ibrahim Jodran, the head of the militia guarding petroleum facilities. Jodran is a supporter of the GNA and a foe of Haftar. Khattabia said his tribe would take action against Haftar's militias. He also claimed Haftar was behind the disappearance of citizens and activists in Benghazi.

Others have complained of the actions of Haftar's forces. Elders and notables in the city of Tobruk where the HoR is located, have also accused Haftar of being responsible for the disappearance of activists and citizens in that city. The group claimed that the kidnappers were receiving support from officials and granted immunity by claiming to be from the army. The kidnappers use false accusations, that victims are sleeper cells, as justification for kidnapping them. In a statement, the elders claim that the kidnappers are under the command of the army and from Al Marj city. Al Marj is where Haftar has his headquarters. The group claimed that those kidnapped are there in illegal detention centers. The group called on Haftar to intervene immediately and release those kidnapped. If this were not done, the group would re-consider recognition of the Libyan National Army (LNA). A number of activists have been abducted for anti-Dignity Operation views. Ahmed Fayad was abducted in the city center early in the week. His fate is not known. Four other activists have been abducted recently.

These events provide some confirmation of the charges of former spokesperson of Operation Dignity, Mohammed Al-Hijazi who defected from the organization in January. Al-Hijazi claimed Operation Dignity had veered off course and the Haftar was a narcissistic dictator who was guilty of corruption and bloodshed: "We cannot be silent any more about his killings, kidnappings, destruction, and forced disappearance." He also accused him of plotting with Kobler, the head of the UNSMIL and of being a foreign agent. He claimed that Kobler was transferring military funds to his sons in Egypt, Tunisia, and Jordan.

Haftar seems still to enjoy considerable popularity especially since recent military advances in Benghazi. He has the support of Egypt, the UAE, and the Arab League. Recently, President El-Sisi of Egypt said that now was not the time for foreign intervention in Libya: “If we give arms and support to the Libyan National Army, it could do a much better job than anyone else, better than any external intervention which could risk putting us in a situation that could get out of hand and provoke uncontrollable developments. "To arm Haftar would be simply to support Operation Dignity and the continuation of the civil war in Libya. It would ensure the breakdown of the GNA as GNC members would revolt. According to one section 8 in additional provisions of the Libyan Political Agreement, the Presidency Council of the GNA took on the role of commander-in-chief of the Libyan Army when the LPA was signed on December 17th. Another section 8 in the main text claims that the Council takes on this role when the GNA is activated upon a vote of confidence in the HoR. The GNA has been activated anyway. A letter signed by an alleged majority of the GNA supporting the GNA was regarded as a green light to activate and move to Tripoli. Almost everyone ignores the issue of section 8 and Haftar's continuation of his role in violation of two sections of the LPA.

Haftar appears not to want the GNA active in case Section 8 is enforced. The EU is sanctioning the president of the HoR's Ageela Salah for not achieving a vote of confidence in the GNA. The HoR is the legislative body of the GNA. Will the HoR move to Tripoli along with its sanctioned president Salah?

Islamic State sets oil storage tanks onf fire at Ras Lanuf Libya

The Islamic State(IS) has launched more attacks on oil terminals, this time at the Ras Lanauf — sometimes spelled Ras Lanuf or Ras Lanouf — export terminal. Four more oil tanks have been set on fire.

The chair of the Tripoli-based National Oil Company, Mustafa Sanalla, described the resulting fires as a disaster. As many as three million barrels of oil could be set on fire. Obviously, IS is not seeking to use the oil facilities as a source of revenue. They are seeking to deprive the Libyan new UN-brokered Government of National Accord (GNA), or the two rivals, the internationally-recognized House of Representatives (HoR) based in Tobruk or the western-based General National Congress (GNC) of any revenue from oil.

Sanalla claimed firemen had been unable to reach the fires because of battles between the Islamic State fighters and the Petroleum Facilities Guard (PFG) militia led by Ibrahim Jadhran. The Libyan National Army commanded by Khalifa Haftar appear not to be involved as Jadhran is at odds with Haftar. Mustafa claimed that for much of the day tanks 5, 9, 10 and 12 had burned unchecked. Sanalla was angry at this further loss, as the NOC had hired a Greek tanker to remove the 490,000 barrels of oil that remained at the tank farm.

Jadhran refused to allow the tanker to load the oil. Jadrahn has shut down Ras Lanauf, along with other export terminals he controls at Sidra, Brega, and Zuetina for most of the last two years. He insists only tankers registered with the rival eastern-based National Oil Company be allowed to load oil. So far the international community has refused to deal with the break-away company. However, recently Egypt signed a contract with the eastern company even as the new GNA comes into being which will insist on having a monopoly of oil exports, I expect. The NOC said that the situation in Ras Lanauf was catastrophic for the environment.

Reports about the situation do not yet give a clear picture of what happened. It is unclear whether the Petroleum Facilities Guard (PFG) were able to repel the attackers. After the January 4 attack on Sidra's main checkpoint the PFG claimed to have regained control of the port. However, IS published a photo, that showed a heavily-armed terrorist standing behind what they claimed was an undamaged tank at the Sidra tank complex.

Bloomberg reports Sanalla as saying that up to three million barrels of crude oil are at risk of being burnt and that the attacks had destroyed electricity towers and cables supporting industrial areas and residencies. This may include oil at sites other than Ras Lanauf. Another source claims there are 13 storage tanks at Ras Lanauf with a capacity of 6.5 million barrels. Bloomberg reports on Libyan oil production: It’s now the smallest producer in the Organization of Petroleum Exporting Countries, producing 362,000 barrels a day.The Wall Street journal claims that Libya’s contribution to the Organization of Petroleum Exporting Countries was just 0.06 percent in 2015. While loss of production from Libya may not have all that much effect on the global oil market the loss of revenue could be disastrous for an already suffering Libyan economy. The Islamic State attacks will generate even more pressure from the international community for Libyans to support the new UN-brokered Government of National Accord.

UN envoy to Libya uses attacks on oil terminals to plead for accepting GNA

Head of the United Nations Support Mission in Libya (UNSMIL) Martin Kobler, in his most recent press release, condemns the recent attacks by the Islamic State on the Es Sidra and Ras Lanuf oil terminal.

Kobler said:

“These oil resources are property of the Libyan people and future generations, Libyan parties must spare no effort to block any attempt by Daesh to finance its terrorist agenda through seizure of Libyan oil. This attack serves as a strong reminder to all Libyans of the need to immediately implement the Libyan Political Agreement and form the Government of National Accord.”Kobler claimed that every day wasted in not implementing the GNA is a day that the Islamic State, or Daesh as he now calls IS, gains. He welcomed the statement issued by the new presidency council of the GNA that condemned the attack.

The ports have actually been closed since December 2014. At least four terminals were set ablaze according to one account. According to the Globe and Mail, five storage tanks were set afire. Four fires were in Es Sidra and one at Ras Lanuf. A spokesperson for the Petroluem Facilities Guards (PFG), Ali al-Hassi, said the PFG were still in control of both Es Sider or Sidra and Ras Lanuf ports. The state oil company has asked for help in extinguishing the fires.

On Monday and Tuesday at least nine guards were reported killed and more than 40 injured. Al-Hassi said the PFG had recovered bodies of 30 Islamic State fighters as well as two military tanks and other vehicles used by the militants. Note that the press reports speak of clashes between the Islamic State fighters and the PFG. There is no mention of the Libyan National Army commanded by Khalifa Haftar. Not only were they not present, they did not provide any air support. The commander of the PFG, Ibrahim Jodran, is at odds with Haftar and says Haftar and IS are two sides of the same coin. Indeed, there was bombing of the Islamic State but by the rival General National Council planes rather than Haftar's air force to stop the advance on the oil ports.

Kobler does not bother to mention the casualties or the work of the GNC and the PFG in repelling the IS attacks. However, the prime minister designate of the GNA Faiez Serraj did mention the work of the PFG in halting the attacks. The spokesperson for the GNC Air Force, Colonel Mustafa Al-Sharksi, was furious that no credit was given to the GNC forces. Ajdabia Municipality confirmed the airstrikes claiming they were coordinated between Jodran armed groups and the GNC Air Force. It's interesting that Jodran supports the rival HoR government as well as the GNA. This is all part of his fight with Haftar, I presume.

Al-Sharksi was not diplomatic: "Speaking on behalf of the faithful revolutionaries and soldiers, we say to this Sirraj, staring your political career with lies means that you do not want concord or peace." He also said the Sirraj government (GNA) would enter Tripoli "over our dead bodies."

Haftar apparently thought his inaction while the Islamic State advanced might not look too good, even though most media did not even notice what was happening. He ordered fighter planes from Benghazi to move to Ras Lanuf to protect the oil terminals and oil fields from Islamic State attacks. This is happening after two days during which he did nothing and after Jodran complained Haftar gave his fighters no air support at all.

The Islamic State fighters retreated to their base in the town of Ben Jawad 30 kilometres to the west of the two oil ports The chair of the Tripoli-based National Oil Company said he does not think the Islamic State intended to seize the ports so as to gain oil revenue but to destroy the stored oil to deny the state revenue. The aim could also be to hasten foreign intervention in Libya to create even greater disarray and convince Islamists to join with them. Libya-analysis has recently published some material that gives useful information about some of the events happening in Libya at present