The head of Libya's internationally recognised government has now said that the country may face a financial crisis in 2020 because of a <a href="https://www.wionews.com/business-economy/libyan-state-oil-firm-says-output-down-75-due-to-blockade-276549">blockade of oil terminals and fields by rival general Khalifa Haftar</a>.

<a href="https://www.wionews.com/world/latest-world-news-erdogan-says-russia-managing-libya-war-at-highest-level-280933">Libya's oil output</a> has fallen sharply since January 18 when the blockade started.

Oil is the main source of national income for the north African country.

With the closure of the eastern Libyan oil ports, Haftar's move has cut Libya's crude output by half.

Before the blockade, Libya was producing at least 1.2 million barrels per day.

The crude output has now dropped to almost a hundred and sixty thousand barrels per day.

<a href="https://www.wionews.com/world/erdogan-states-that-haftar-cannot-be-expected-to-respect-libya-truce-276633">Also read: Erdogan states that Haftar cannot be expected to respect Libya truce</a>

Over 85 per cent of Libya's crude exports go to Europe, while around 32 per cent of Libyan oil goes to Italy, 14 per cent to Germany, 10 per cent to China and France and 5 per cent to the united states.

Haftar's position has now been strengthened as the oil fields remain shut.

The eastern-commander had&nbsp;accused the Tripoli-based government of using oil revenues to fund foreign fighters.

His comes as a power struggle between Sarraj's GNA based in Tripoli and a parallel administration backed by Haftar's self-styled Libyan national army in the east has left the country divided.

Both the forces have been fighting since April to gain control of the capital.

Fighting has continued despite calls for a truce by both Russia and Turkey and an international peace summit aimed at brokering peace.

The head of Libya's internationally recognised government has now said that the country may face a financial crisis in 2020 because of a blockade of oil terminals and fields by rival general Khalifa Haftar.

The head of Libya's internationally recognised government has now said that the country may face a financial crisis in 2020 because of a blockade of oil terminals and fields by rival general Khalifa Haftar. Libya's oil output has fallen sharply since January 18 when the blockade started. Oil is the main source of national income for the north African country. With the closure of the eastern Libyan oil ports, Haftar's move has cut Libya's crude output by half. Before the blockade, Libya was producing at least 1.2 million barrels per day. The crude output has now dropped to almost a hundred and sixty thousand barrels per day. Also read: Erdogan states that Haftar cannot be expected to respect Libya truce Over 85 per cent of Libya's crude exports go to Europe, while around 32 per cent of Libyan oil goes to Italy, 14 per cent to Germany, 10 per cent to China and France and 5 per cent to the united states. Haftar's position has now been strengthened as the oil fields remain shut. The eastern-commander had accused the Tripoli-based government of using oil revenues to fund foreign fighters. His comes as a power struggle between Sarraj's GNA based in Tripoli and a parallel administration backed by Haftar's self-styled Libyan national army in the east has left the country divided. Both the forces have been fighting since April to gain control of the capital. Fighting has continued despite calls for a truce by both Russia and Turkey and an international peace summit aimed at brokering peace.

Libya may face financial crisis due to oil blockade by rival general Khalifa Haftar

Libya's oil production has plunged by around three-quarters since forces loyal to military strongman Khalifa Haftar launched a blockade a week ago, the National Oil Company announced Saturday.

The fall, from 1.2 million barrels a day to just over 320,000, has caused estimated losses of $256 million since the closure of major oil fields and ports in the east and south of the country, the NOC said in a statement.

Haftar began an offensive in April last year to seize the capital Tripoli from the UN-recognised Government of National Accord.

Pro-Haftar forces blockaded the main oil terminals in eastern Libya the day before a summit in Berlin on January 19 that called for the end of foreign interference in the conflict and a resumption of the peace process.

Exports were suspended at the ports of Brega, Ras Lanouf, Al-Sidra, Al-Hariga and Zweitina in the country's "oil crescent".&nbsp;

The NOC also denounced the closure of valves at a pumping station in the southwest, which shut down production the major fields of Al-Sharara and Al-Fil.

Libya's oil production has plunged by around three-quarters since forces loyal to military strongman Khalifa Haftar launched a blockade a week ago, the National Oil Company announced Saturday.

Libya's oil production has plunged by around three-quarters since forces loyal to military strongman Khalifa Haftar launched a blockade a week ago, the National Oil Company announced Saturday. The fall, from 1.2 million barrels a day to just over 320,000, has caused estimated losses of $256 million since the closure of major oil fields and ports in the east and south of the country, the NOC said in a statement. Haftar began an offensive in April last year to seize the capital Tripoli from the UN-recognised Government of National Accord. Pro-Haftar forces blockaded the main oil terminals in eastern Libya the day before a summit in Berlin on January 19 that called for the end of foreign interference in the conflict and a resumption of the peace process. Exports were suspended at the ports of Brega, Ras Lanouf, Al-Sidra, Al-Hariga and Zweitina in the country's "oil crescent". The NOC also denounced the closure of valves at a pumping station in the southwest, which shut down production the major fields of Al-Sharara and Al-Fil.

Libyan state oil firm says output down 75% due to blockade

Jihadist attacks and political struggles are thwarting attempts by Libya&#39;s unity government to revive an oil industry seen as vital for the economy of the impoverished North African country. 
 
Five years since the fall of dictator Moamer Kadhafi, Libya&#39;s rival governments and militias are in a bitter struggle for control of crude exports. 
 
The political turmoil, coupled with Islamic State (IS) group attacks on oil facilities, has brought shipments to a near-standstill. 
 
Despite having Africa&#39;s largest oil reserves, estimated at around 48 billion barrels, Libya has only managed to export a few tankers of crude in recent months. 
 
On August 1, the Tripoli-based National Oil Company (NOC) announced that it was preparing to restart regular exports of crude. 
 
But analysts doubt Libyan oil will be gushing back to world markets just yet. 
 
&quot;Opening the ports allows the NOC to start to undertake repairs, but that will still take time,&quot; said Scott Modell, an analyst at energy consultancy Rapidan Group. 
 
&quot;One announcement about potentially opening ports that are not fully functional is not going to turn around the overall trajectory of the political process,&quot; he added. 
 
Since 2010, the country&#39;s production has plummeted from 1.5 million barrels per day (bpd) to just 300,000 bpd. 
 
Libya now has the smallest production of any member of the Organization of Petroleum Exporting Countries (OPEC). 
 
The 2014 collapse in oil prices was a further blow. Industry sources say Libya&#39;s exports this year will earn it just a tenth of the estimated $45-50 billion (40-45 billion euros) it took in 2010. 
 
That is a disaster in a country where the government depends on oil exports for nearly all of its revenue. 
 
Struggle for control 
 
Libya&#39;s Tripoli-based Government of National Accord (GNA) faces major obstacles as it tries to revive the sector. 
 
For a start, the NOC is split into two rival branches -- one loyal to the GNA and the other based in Benghazi and loyal to a rival government. 
 
Meanwhile, all of the country&#39;s export terminals in Libya&#39;s eastern &quot;oil crescent&quot; are controlled by the Petroleum Facilities Guard (PFG), a militia set up to protect them. 
 
They include the two key export terminals of Ras Lanuf and Al-Sidra, 650 kilometres (400 miles) east of the capital, which are together capable of handling 700,000 bpd. 
 
But they were shut down in January after storage tanks were set on fire during attacks by IS. 
 
The jihadists have taken advantage of the turmoil to establish a presence in Libya, but now appear close to losing their stronghold in Sirte which lies between Tripoli and the oil crescent. 
 
PFG leader Ibrahim al-Jadhran also regularly defies both of Libya&#39;s rival governments. 
 
&quot;The blockage costs Libya $30 million (27 million euros) a day,&quot; Mustafa Sanalla, chairman of the Tripoli-based branch of the NOC which supports the unity government, said in April. 
 
At the end of July, the GNA announced that it had reached an agreement with Jadhran to re-open the Ras Lanuf and Al-Sidra export terminals. 
 
The NOC said the unity government had agreed to pay salaries to the oil installation guards and provide them with schools and hospitals. 
 
East-west rivalry 
 
That agreement underlined the bitter struggle between the GNA and a rival administration based in Libya&#39;s far east that refuses to recognise the unity government. 
 
It controls much of the east through part of the Libyan army led by general Khalifa Haftar, and runs a rival NOC out of Benghazi. 
 
After the GNA&#39;s agreement with Jadhran, Haftar&#39;s forces told AFP they would bomb tankers approaching the Libyan coast without the Benghazi NOC&#39;s permission. 
 
It also moved troops towards the Zueitina terminal, another major facility on the oil crescent. 
 
But the Petroleum Facilities Guard said it was prepared to fight. 
 
&quot;We will not let them control the ports,&quot; said spokesman Ali al-Hassi. 
 
The standoff appears to have stalled an agreement, announced on July 3, to unify the rival NOCs. 
 
Germany, Spain, the United States, France, Italy and Britain have called for all the country&#39;s oil installations to be immediately handed over to the GNA. 
 
A Libyan oil industry veteran, who did not want to be named, said the country could only restore oil exports if there was &quot;a strong unified government and a single military force&quot;. 
 
&quot;As long as there are still ongoing political and power struggles... the resumption of full oil production and exports can never be achieved.&quot; 
 
(AFP)

The political turmoil, coupled with Islamic State group attacks on oil facilities, has brought shipments to a near-standstill

Jihadist attacks and political struggles are thwarting attempts by Libya's unity government to revive an oil industry seen as vital for the economy of the impoverished North African country. Five years since the fall of dictator Moamer Kadhafi, Libya's rival governments and militias are in a bitter struggle for control of crude exports. The political turmoil, coupled with Islamic State (IS) group attacks on oil facilities, has brought shipments to a near-standstill. Despite having Africa's largest oil reserves, estimated at around 48 billion barrels, Libya has only managed to export a few tankers of crude in recent months. On August 1, the Tripoli-based National Oil Company (NOC) announced that it was preparing to restart regular exports of crude. But analysts doubt Libyan oil will be gushing back to world markets just yet. "Opening the ports allows the NOC to start to undertake repairs, but that will still take time," said Scott Modell, an analyst at energy consultancy Rapidan Group. "One announcement about potentially opening ports that are not fully functional is not going to turn around the overall trajectory of the political process," he added. Since 2010, the country's production has plummeted from 1.5 million barrels per day (bpd) to just 300,000 bpd. Libya now has the smallest production of any member of the Organization of Petroleum Exporting Countries (OPEC). The 2014 collapse in oil prices was a further blow. Industry sources say Libya's exports this year will earn it just a tenth of the estimated $45-50 billion (40-45 billion euros) it took in 2010. That is a disaster in a country where the government depends on oil exports for nearly all of its revenue. Struggle for control Libya's Tripoli-based Government of National Accord (GNA) faces major obstacles as it tries to revive the sector. For a start, the NOC is split into two rival branches -- one loyal to the GNA and the other based in Benghazi and loyal to a rival government. Meanwhile, all of the country's export terminals in Libya's eastern "oil crescent" are controlled by the Petroleum Facilities Guard (PFG), a militia set up to protect them. They include the two key export terminals of Ras Lanuf and Al-Sidra, 650 kilometres (400 miles) east of the capital, which are together capable of handling 700,000 bpd. But they were shut down in January after storage tanks were set on fire during attacks by IS. The jihadists have taken advantage of the turmoil to establish a presence in Libya, but now appear close to losing their stronghold in Sirte which lies between Tripoli and the oil crescent. PFG leader Ibrahim al-Jadhran also regularly defies both of Libya's rival governments. "The blockage costs Libya $30 million (27 million euros) a day," Mustafa Sanalla, chairman of the Tripoli-based branch of the NOC which supports the unity government, said in April. At the end of July, the GNA announced that it had reached an agreement with Jadhran to re-open the Ras Lanuf and Al-Sidra export terminals. The NOC said the unity government had agreed to pay salaries to the oil installation guards and provide them with schools and hospitals. East-west rivalry That agreement underlined the bitter struggle between the GNA and a rival administration based in Libya's far east that refuses to recognise the unity government. It controls much of the east through part of the Libyan army led by general Khalifa Haftar, and runs a rival NOC out of Benghazi. After the GNA's agreement with Jadhran, Haftar's forces told AFP they would bomb tankers approaching the Libyan coast without the Benghazi NOC's permission. It also moved troops towards the Zueitina terminal, another major facility on the oil crescent. But the Petroleum Facilities Guard said it was prepared to fight. "We will not let them control the ports," said spokesman Ali al-Hassi. The standoff appears to have stalled an agreement, announced on July 3, to unify the rival NOCs. Germany, Spain, the United States, France, Italy and Britain have called for all the country's oil installations to be immediately handed over to the GNA. A Libyan oil industry veteran, who did not want to be named, said the country could only restore oil exports if there was "a strong unified government and a single military force". "As long as there are still ongoing political and power struggles... the resumption of full oil production and exports can never be achieved." (AFP)

Libya strives to improve oil exports amid jihadist attacks, political struggles