Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Libya's Haftar committed to ending oil blockade, U.S. says

Published 09/12/2020, 01:24 PM
Updated 09/12/2020, 05:00 PM
© Reuters. Libyan commander Khalifa Haftar meets Greek Prime Minister Kyriakos Mitsotakis (not pictured) at the Parliament in Athens

CAIRO (Reuters) - Libyan commander Khalifa Haftar has committed to ending a months-long blockade of oil facilities, the U.S. embassy in the country said in a statement on Saturday, but it was unclear if oil fields and ports would reopen.

The statement said the eastern-based Libyan National Army (LNA) had conveyed "the personal commitment of General Haftar to allow the full reopening of the energy sector no later than Sept. 12".

It comes after the United States led efforts to end the oil shutdown amid a wider diplomatic push to cement a ceasefire and a political agreement between rival factions based in eastern Libya and in the capital Tripoli, in the west.

Haftar's LNA and its backers imposed the blockade in January, reducing Libya's oil output from more than one million barrels per day (bpd) to less than 100,000 bpd, and further deepening Libya's economic collapse.

The U.S. embassy said that "in recent discussions with a broad range of Libyan leaders" it had backed "a financial model that would constitute a credible guarantee that oil and gas revenues would be managed transparently".

"The Embassy welcomes what appears to be a Libyan consensus that it is time to reopen the energy sector," it said.

A source close to Haftar said the veteran commander "was able to achieve, for the first time in the history of Libya, the condition of the fair distribution of (oil) revenues". An official announcement would be made soon, he said.

Engineers at two oilfields and one port said they remained closed. The state-run National Oil Corporation (NOC), based in Tripoli, and an LNA spokesman, had no immediate comment.

Recent ceasefire calls by the prime minister of the internationally recognised government in Tripoli and the head of a rival parliament in the east included a proposal for oil revenues to be frozen in a special account pending a political deal, as a way of ending the stand-off.

Although authorities in eastern Libya have allowed some stored oil products to be exported in order to ease a power generation crisis in eastern Libya, they have stopped short of lifting the blockade.

© Reuters. Libyan commander Khalifa Haftar meets Greek Prime Minister Kyriakos Mitsotakis (not pictured) at the Parliament in Athens

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.