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Libyan Protesters Threaten Oil Shutdowns

January 12, 2024
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A recent surge in protests in Libya has led to a significant threat: the potential shutdown of two crucial oil and gas facilities near the capital, Tripoli.

This development comes as an anti-corruption group issued a 72-hour ultimatum, expiring on Friday, demanding substantial changes in the industry’s management.

The group, known as the “Anti-Corruption Movement,” declared their intention to cease gas operations at the Mellitah complex.

This facility, a joint venture between Libya’s National Oil Corporation (NOC) and Italian energy giant Eni, is a key component of the Greenstream pipeline, pivotal for gas exports from Libya to Italy.

Demonstrators are pressing for the dismissal of the NOC’s Chairman, Farhat Bengdara, alleging serious misconduct and criminal-level violations. Their demands extend to preventing Bengdara from entering into any new oil and gas agreements.

Further issues raised by the protesters include the need for employment opportunities for local youth, and addressing the environmental pollution caused by these installations.

According to Salem Mohamed, a spokesperson for the group, there’s a possibility of escalating to civil disobedience, if their demands remain unaddressed.

Libya’s oil sector, the cornerstone of its economy, has been a focal point for unrest and political protests since the 2011 uprising that toppled Muammar Gaddafi. Various groups, both local and national, have been advocating for a larger share of oil revenues, and broader political reforms.

The group also announced plans to shut down the Zawiya refinery, Libya’s largest operational refinery, with a capacity of 120,000 barrels per day. This refinery is linked to the Sharara oil field, which has already been declared under force majeure by the NOC due to previous protests in the Fezzan region.

The NOC reported that Bengdara had engaged in discussions with Fezzan leaders, regarding the ongoing crisis.

The Mellitah complex and Greenstream pipeline are critical for Libya’s energy exports, particularly to European markets like Italy.

The unrest reflects deep-seated socio-economic issues in Libya, emphasizing the urgent need for effective management and equitable distribution of oil and gas revenues.

These protests underscore the complex challenges facing Libya’s transitional government, struggling to stabilize the country amidst political fragmentation. Environmental concerns and local job creation in oil-rich regions are increasingly becoming focal points of public discontent in Libya.

The situation is a litmus test for Libya’s ability to manage its oil and gas resources while addressing the diverse needs of its population.
This escalation underscores the fragile balance between the country’s economic lifeline, and the growing public demand for transparency, environmental responsibility, and equitable resource distribution.

Tags: libyaLibyan CapitaloilOil Fieldstripoli
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