Libya: Problems on the West Front and Money

Most of my recent write-ups on Libya has focused on the east. Here's something that recently happened in the oil fields in the western part of Libya -- though nothing like the battle that occurred in the eastern terminals.

Via E & P Magazine:

Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bbl/d) on July 14 after two staff were abducted in an attack by an unknown group, the National Oil Corp. (NOC) said . . . “Four of the station staff were initially kidnapped, but two of them have been since released,” it said. “Oil wells in the surrounding area have been shut down as a precaution, and all other workers evacuated.”

Who wants to bet that this unknown group abducted the four station staff due to a desire for a monetary payoff from the oil profits?



Taking a look at a map, the Sharara fields are south of Tripoli. It looks like it is closer to Chad than it is to Tripoli. Is it possible this is related to Chadian mercenaries? I would think not as Chadian mercenaries in the east helped take control of the oil terminals. Taking four staffers doesn't seem to be what the mercenaries do.

Back to eastern Libya. I previously wrote about the attacks on the oil terminals in the east. The terminals were temporary taken over by a group called the Benghazi Defence Brigades, which was supported by Chadian mercenaries. The LNA (Khalifa Haftar) eventually was able to gain control of the terminals. They then said they planned not to return the terminals to the National Oil Corp (NOC)and would instead control the terminals themselves. The US along with other nations sided against the LNA and demanded that the LNA return control to the NOC. The LNA backed down and it was assumed that Haftar didn't get much out of his power move.

It is actual possible that Haftar got something out of his power move. Via the UK's Independent:

However, despite his apparent capitulation, according to sources close to the Libyan authorities, as part of the deal, the international governments present agreed there should be a wide-ranging corruption probe under the auspices of the United Nations . . . The Libyan parliament has now written to the UN formally requesting the probe. Any investigation could be widespread and take in the involvement of politicians, businessmen, western oil companies and traders operating in the country, as well as the country’s central bank.

Haftar might have gotten something; however, will this corruption probe actually work? Yes, it could potentially highlight how money is being funneled to various bad actors. Yet, can you really cut off funds to these bad actors without pushing Libya into more chaos? I could see this causing more chaos, at least in the short term. If the LNA and Tripoli government (GNA) are able to hold firm (and not get over-thrown), it could work out for the better in the long-term as I could see Chadian mercenaries leaving the country if they aren't able to gain any monetary value from sticking around. Of course, if specific tribes get their funds significantly cut, it could result in future revolts. In fact, if Haftar is able to get more money for himself, he could play king pen in terms of handing out oil money. So the corruption would just shift from what is assumed to be centered around the central bank to other power bases.