Resolution over Central Bank Leadership Reopens Libya's Oilfields

Libya's eastern-based government announced the reopening of oilfields after settling a central bank leadership dispute. This resolution seeks to boost oil production following a significant drop due to the conflict between Libya's western and eastern authorities over the central bank's governance.

The eastern government of Libya announced on Thursday the reopening of oilfields and facilities, concluding a prolonged dispute over central bank leadership that had severely hampered oil production.

Since 2014, Libya has experienced a division between west and east authorities, stemming from the turmoil after Muammar Gaddafi's fall in 2011. The agreement to appoint Naji Issa as the new central bank governor has paved the way to resume oil production and exports.

Oilfields were shuttered on August 26 to protest changes proposed by Tripoli's Presidential Council led by Mohamed al-Menfi. These changes aimed to replace longstanding central bank chief Sadiq al-Kabir. Libya's oil production plummeted to half its usual capacity. In September, crude exports sharply fell to around 460,000 barrels per day from over a million in August, according to Kpler data.

(With inputs from agencies.)