The country is exempt from the cartel’s latest crude production limit agreement (reached between the market maker Saudi Arabia and the non-member Russia in April) which aims to cut supplies by 7.7 million bpd by December of this year in an effort to buoy anemic oil prices. Libyan Prime Minister Fayez al-Sarraj hasn’t accepted the agreement, casting doubt on any imminent resumption of production. In 2017, Russia’s Rosneft began to buy raw material from the Libyan state-owned oil company NOC. Per the agreement, the LNA ended its blockade of key oil export infrastructure mid last month. . That is why Russian analysts point out that Moscow’s interests in Libya are both economic and geopolitical. In any case, the conflict in Libya will not be over any time soon. Deputy Prime Minister Ahmed Maiteeq reached the accord last week at a meeting in Sochi, Russia, with military commander Khalifa Haftar’s son and representatives from oil-rich eastern Libya. Russia and Turkey both covet those resources and the power in Eastern Mediterranean politics they promise. Turkey’s role in Libya must be circumscribed by the international community if stability and reconciliation is the ultimate goal. In a move that illustrates new levels of boldness, Russian fighters have seized one of the largest oil fields in Libya. Libya’s National Oil Corp. said it wouldn’t lift force majeure provisions until Russian mercenaries who support Haftar withdraw from oil installations, and denounced what it called parallel talks in a statement late Thursday. Find out more about how we use your information in our Privacy Policy and Cookie Policy. in the holy month of Ramadan, has remained largely ineffective. Earlier this year, a militia known as the Petroleum Facilities Guard, which takes orders from Hifter’s forces, helped shut down oil production when Hifter-allied tribes led a blockade of Libya’s oil ports — a challenge to the Tripoli administration. Russian and other foreign mercenaries have entered Libya’s largest oil field, the country's National Oil Corporation said on Friday, describing the development as an attempt to thwart the resumption of halted oil production in the war-torn country. For 22 years, I was the Heritage Foundation’s leading Russia/Eurasia and international energy expert. the US Africa Command accused Kremlin of deploying military fighter aircraft, the war will intensify with devastating outcomes, Tatneft resumed seismic acquisition activities, warned that the two countries could eventually start a confrontation over Libya. It is assumed that the proceeds from its implementation will be fairly distributed among all regions of the country.”. He has written for CGTN, Global Comment, Tsarizm, and Weekly Blitz. The international community, including the United Nations and the parties involved should hope that the Maiteeq-GNA/Haftar- LNA agreement will allow the provision of diplomatic and technical assistance so that oil revenues may finally reach the long-suffering people of Libya – and keep the oil price down in the difficult global economic recovery from COVID-19. It could be that Ankara’s interests in Libya – which center around controversial maritime borders and deep sea drilling rights in the Eastern Mediterranean – are better served if the GNA government (which backs their claims) is well-funded. Egypt last week warned that an attack on Sirte would trigger its direct military involvement in the conflict. Large Russian oil and gas companies (such as Tatneft) are interested in returning to the Libyan market. However, there are also those who oppose this agreement. Because of the civil war in the North African nation since 2014, the Russian energy giants suspended their operations in the country, although recently Tatneft resumed seismic acquisition activities in the Hamada basin. Nikola is also a regular contributor to KJ Vids YouTube geopolitical channel. Brent crude futures fell $1.64, or 3.9%, to $40.66 a barrel Thursday on renewed coronavirus fears and news of increased production from OPEC, which added 160,000 bpd in September from August numbers. Maiteeq called the agreement concluded under the new Commission (“the Libyan-Libyan initiative”). Despite having Africa’s largest crude reserves, Libya may struggle to ramp up production quickly even if the conflict has abated. In my free time, I enjoy skiing, sailing, classical music, and my two cats. Russia supports the eastern-based Libyan National Army (LNA) of Khalifa Haftar, while Turkey backs Libya’s UN recognized Government of National Accord (GNA).Sanallah said separate negotiations carried out by NOC in coordination with the head of the presidential council and the international community include an initiative that include safe operation of oil fields and ports, and pushing all “foreign mercenaries” out of them. Libya’s National Oil Corporation (NOC), perhaps the third most powerful party in Libya after the warring governments, views the plan as a threat to its monopoly on oil decision-making. I am a Senior Fellow at the Atlantic Council and the Founding Principal of International Market Analysis, a Washington, D.C.-based global risk advisory boutique. The current agreement will cover the existing reserves, negotiations on a single budget, and the re-launch of the banking clearing system inside Libya. “With great concern, we recognize that the call for a humanitarian ceasefire in Libya, particularly . Never before has the country been so diplomatically isolated, with many identifying its overt support for the extremist Muslim Brotherhood as a driver of the Arab countries’ collective diplomatic shift towards Israel. Since Turkish interests in the North African country are diametrically opposed to Russian ambitions in the region, Shamil Sultanov, the head of Russia’s center for the Middle East studies, warned that the two countries could eventually start a confrontation over Libya. In divided Libya, Russia is a leading backer of the east-based forces led by commander Khalifa Hifter, who has been waging war against the U.N.-supported government in the capital, Tripoli, which is mainly backed by Turkey. Eastern Libyan commander Khalifa Haftar announced on Friday he would lift for one month his blockade of oil output and said he had agreed with the rival Tripoli government on “fair distribution” of energy revenue.A resumption of oil exports after the eight-month blockade would relieve mounting financial pressure for both sides in the Libyan conflict and could remove a major obstacle towards a political settlement, but it is not yet clear if the declared agreement has wider support.