Libya’s self-proclaimed prime minister [Omar al-Hassi] has warned that attempts by a rival government in the east to assert control over the oil industry could escalate the political conflict dividing the OPEC member state and force it to break in two. Libya has had two governments competing for power since August 2014 when a group called Operation Libya Dawn, which opponents say is backed by Islamists, seized Tripoli and forced the elected Prime Minister Abdullah al-Thinni to flee 1,000 km to a small city near the border with Egypt.
The warning by Omar al-Hassi, prime minister of the rival government, came after Thinni’s government claimed air strikes on Tripoli’s Mitigate airport this week, escalating a confrontation that started with an attack by Libya Dawn on a rival force in Tripoli in July. The new rulers in the capital are not recognised by the United Nations and world powers but have taken over ministries, oil facilities, airports and much of western and central Libya.
In a step to assert control over the oil industry, Thinni’s government said it had appointed a new chairman of the National Oil Corp. Thinni had initially retained the state oil firm’s previous head, Mustafa Sanallah, but he remains in Tripoli. The conflict gripping Libya three years after the overthrow of Muammar Gaddafi poses a legal dilemma for oil traders, who are left wondering who owns Libya’s oil exports, worth more that $10 billion a year. The country sits on Africa’s largest oil reserves…
“There are attempts (by Thinni) to set up an eastern Supreme Court, there are attempts to launch a central bank in the east, there are attempts to establish a separate oil ministry in the east,” said Hassi, who said he was against partition.
Thinni’s government has sought to move heads of state-run institutions to the east as he is recognised by the international community, but he too denies any plans for secession.
But Hassi said Thinni’s government had shown it intended to control oil facilities in the eastern rump state by picking al-Mabrook Bou Seif as new NOC Chairman, since he was from the same tribe as Ibrahim Jathran, a former rebel leader who seized eastern ports for a year to press for regional autonomy.
Struggle over Libya’s oil risks breaking up country -rival PM, Reuters, Nov. 28, 2014