Libya's Oilfields Reopen Amid Central Bank Leadership Resolution

Libya's rival governments have resolved a central bank leadership dispute, allowing for the reopening of all oilfields and export terminals. This development could significantly increase Libya's oil output. The National Oil Corporation lifted force majeure, anticipating higher production and exports, despite ongoing technical challenges at key sites.

In a major development, Libya's eastern and western governments have reached an agreement resolving a prolonged dispute over the leadership of the central bank. As a result, both the eastern-based administration and the Tripoli-based National Oil Corporation (NOC) have announced the reopening of all oilfields and export terminals.

This move is expected to significantly enhance Libya's oil output, which has been severely disrupted since 2014 due to political fragmentation and conflict. The NOC lifted force majeure at oilfields and terminals as of October 3, confirming resumption of operations with a recent security assessment of major sites, Sharara, El Feel, and Essider.

Despite the announcement, technical issues persist at the El Feel oilfield, delaying immediate production. The resolution includes a strategic financial collaboration between NOC and the new central bank governor Naji Issa, emphasizing projects aimed at boosting production amid fluctuating crude prices and the financial strain from prolonged downtime.

(With inputs from agencies.)