(Bloomberg) -- Libya is preparing to restore oil production as two rival governments in the North African country overcame differences that caused the flow of petroleum to be halted or disrupted last month.
The nation’s oil sector is expected to receive orders to resume output in the coming hours and should start doing so by tomorrow, people familiar with the matter said, asking not to be identified because they’re not authorized to speak to the media.
An announcement is widely expected after parliament on Monday approved a new central bank governor, said the people.
Libya normally pumps about 1.2 million barrels of crude a day, but that figure dropped to less than 450,000 barrels in late August after the western government fired the regulator’s veteran governor, riling the east. The central bank post gives oversight over the spending of billions of dollars of energy revenue.
The country’s competing administrations on Sept. 26 signed a United Nations-brokered agreement that brings in Naji Issa, a former head of the bank’s issuance department, as new chief. That appointment was confirmed by the House of Representatives in Benghazi, in the east, on Monday. The bank’s new board is set to be appointed in 10 days.
Libya has been wracked by unrest since the 2011 overthrow of longtime dictator Moammar Al Qaddafi, with clashes between armed groups loyal to different factions or individuals frequently shutting key oil fields as they vie for influence. The country sits atop Africa’s biggest known crude reserves.
The Sept. 26 agreement, like previous Libyan pacts, rests on shaky foundations. A UN-backed cease-fire in 2020 succeeded in ending fighting, but has yet to lead the country to nationwide elections or solve the long-running split between east and west.
--With assistance from Tarek El-Tablawy.
©2024 Bloomberg L.P.
