Libya: No End In Sight To Instability

8 Nov 2013 Issue: 56 / 45

Eastern separatism is tearing ever bigger holes in the brittle fabric of Libyan national unity. What began as industrial disputes has morphed into a political movement. There appears no end in sight to the instability wracking the country’s oil sector. Increasing numbers of IOCs are looking for the exits (see p7).

Coverage of Libya is running out of superlatives to describe the state of chaos engulfing the country. As the lack of central authority is crippling the oil industry, international operators cling to the hope that production will resume whilst their quarterly results reflect a steadily deteriorating situation.

Oil output has slumped to as little as 250,000 b/d, National Oil Corporation (NOC) official Muhammad al-Harairi said on 4 November. He spoke as the government announced the reopening of the Marsa al-Hariga export terminal in Tobruk in the country’s east, where exports had halted when workers went on strike in July. As with the other eastern terminals of Marsa al-Brega, Ras Lanuf and Zueitina, Hariga then fell victim to eastern secessionist demands recasting industrial into political action. (CONTINUED - 818 WORDS)