Oil in Libya .. The US Embassy comments on the continued disruption of production

The United States of America has expressed its concern about the continued disruption of oil production in Libya, calling on Libyan leaders to establish a financial mechanism to address the spending of its revenues.

The US Embassy in Libya said that the damage caused by the closure of the Libyan oil fields will cost the country additional millions, and it risks an environmental disaster, which could affect the country’s ability to benefit from this infrastructure in the future, to reach its full production potential, according to a statement published on its website. the official.

“Responsible Libyan leaders must realize that the closure is hurting Libyans across the country, has repercussions on the global economy, and they must end it immediately,” she added.

The embassy considered that the suspension of oil production deprives the Libyans of large revenues, and contributes to raising the prices of commodities, in addition to creating an electricity crisis and problems related to water supply and fuel shortages.

Security Council Resolutions

Oil in Libya
Clashes besiege the oil sector in Libya – Photo from the Financial Tribune

The statement of the US Embassy in Libya referred to the various Security Council resolutions that protect the National Oil Corporation, affirming its commitment to working with Libyan leaders on a mechanism that would reassure Libyans that oil revenues in Libya are distributed to their benefit.

Prior to the closure, the United States had recommended an additional revenue transfer that would be monitored and supervised by a Libyan-led financial mechanism; Nevertheless, Libyan leaders decided independently to conduct more substantial transfers, the statement said.

The embassy stressed that the United States considers stopping oil production in Libya a hasty response that harms the Libyan people, and undermines international confidence in Libya as a responsible actor in the global economy.

She noted that America continues to advise and advise on the establishment of a temporary Libyan financial mechanism with broad support to address how Libya’s revenues are spent, in the absence of an agreed national budget.

“This mechanism can be used by the Libyan authorities to give the Libyan people confidence regarding how oil revenues from the National Oil Corporation are being used and to prevent the transfer of funds for partisan political purposes that could undermine peace and security in Libya,” she added.

Expense Financing

The US Embassy recommended that the mechanism be designed as soon as possible, to allow Libyans to ensure that critical expenditures are paid to people with the highest degree of transparency.

And she continued, “To build confidence, all parties must know when and to whom money is being transferred to finance agreed expenditures. We affirm that Libya’s wealth must serve Libyans throughout the country.”

The embassy stressed that no person from outside should decide the fate of Libyan resources, and any mechanism should only provide a way for Libyans to reach agreement among themselves, to avoid unnecessary economic turmoil that only serves to harm them.

The crisis in Libya

Sharara oil field
Sharara oil field in Libya – archive

During the past few days, the oil sector in Libya witnessed a series of closures that affected major oil fields such as El Sharara and El Feel, in addition to the closure of ports used by Libya to export oil, such as the port of Zueitina.

And the Libyan Oil Corporation announced that the losses of stopping oil production in Libya during the past days amounted to about 4 million barrels, at a rate of 570,000 barrels per day.

The Adviser to the Secretary-General of the United Nations in Libya, Stephanie Williams, had called for the lifting of the blockade on the oil sector in Libya, calling for the need to neutralize the sector and keep it away from political disputes.

Libya is witnessing a power struggle, as protesters seek to use armed operations as a pressure card to force the oil sector in Libya to stop production, pending the handover of power to the elected government at the end of last February.

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