Mohammad Aoun, Libya’s Minister of Oil and Gas highlighted the critical issue of fuel smuggling as a significant challenge in the nation’s oil distribution, particularly in the south. Despite sufficient quantities being allocated for local consumption, Aoun pointed out that smuggling is a major concern.
In an interview with Libya Alahrar TV Channel, Aoun clarified that the “responsibility of the ministry ends once the oil leaves its storage facilities,” emphasising that the “issue of smuggling falls under the jurisdiction of law enforcement and security agencies, rather than the Ministry of Oil and Gas.”
Aoun also addressed recent interactions with protestors in the Fezzan region. He mentioned that their demands have been forwarded to the Prime Minister. The ministry is currently awaiting a response, and guidance on these matters.
Furthermore, he noted a substantial decrease in oil production, with a shortfall of about 250,000 barrels per day of crude. This reduction not only impacts the country’s revenue, but also has significant repercussions for Libya’s international oil commitments, particularly considering the high quality and value of Sharara oil.
Aoun also mentioned ongoing efforts to develop the southern refinery, stressing the need for more time to complete this project. He reiterated the ministry’s stance against using oil and other natural resources as a means of political pressure, or for demanding rights.
This situation underscores the complex challenges facing Libya’s oil sector, particularly in terms of ensuring efficient distribution, and curbing smuggling. These issues not only affect the country’s economy, but also hinder efforts to maintain stable and equitable resource distribution among different regions.
The minister’s reference to the demands from Fezzan highlights the broader challenges of regional disparity, and resource allocation in Libya. The delay in responding to these demands points to the complexities involved in balancing national and regional interests, within the country’s current political framework.
The noted decrease in oil production has broader implications for the national economy and Libya’s role in the global oil market. Especially at a time when the country is attempting to navigate post-conflict recovery, and rebuild its infrastructure.
The development of the southern refinery is a key part of Libya’s strategy to enhance its oil processing capabilities, and reduce dependency on external resources. However, the project’s slow progress reflects the broader challenges of post-conflict reconstruction in Libya.