LIbya: Part 3 -- Eastern Libya and Oil Grab

After regaining control of the Ras Lanuf and Sidra oil terminals, the Libyan National Army (LNA) laid claim to the terminals and transferred responsibility to an entity based in Benghazi. Previously, responsibility for running the terminals was based in Tripoli via the National Oil Corporation (NOC).

The Government of National Accord (GNA) based in Tripoli responded. Per Aljazeera:

"The oil revenues are sent to the Central Bank of Libya to meet all Libyans' needs, solve crises and manage the affairs of all areas in the country without discrimination," the statement said. 

The eastern-based authorities made a similar attempt to bypass the Tripoli government in April 2016, but their planned sale of 300,000 barrels per day of crude was stopped by the UN Security Council.



Note that the LNA attempted this back in 2016, but backed down.

So . . .

Will the world stop buying oil from Libya due to this take-over?

What's behind the LNA move? My speculation, they need the money to either help fight the Benghazi Defence Brigades (BDB), the group that initially attacked the oil terminals, or to pay off the group with an increased share of the terminal profits.

Also, if the LNA is allowed to control the terminals, it means the GNA will have less money to pay off those that might want to over-turn their rule in Tripoli. There could be some battles popping up in the west soon.

If the LNA returns the terminals to Tripoli control, they'll at a minimum get a greater percentage of the profits.