Factional Dispute In Libya May Derail Oil Production Hike

A dispute over the distribution of oil revenue between General Khalifa Haftar, the de facto ruler of eastern Libya, and the UN-recognised administration in Tripoli is threatening to impact plans to significantly ramp-up Libyan oil production.

• Haftar has set an end-of-August deadline for a deal to provide the equitable distribution of oil revenue before pursuing military action, alleging the government in Tripoli of squandering energy revenues.
• Haftar said yesterday, in an address near Benghazi, that if a committee "to put in place financial arrangements with a view to fair management of public funds [and energy revenue]," isn't established by the end of August, “armed forces will be ready for orders when the time comes," but did not elaborate on the kind of military action which may be pursued.
• Libya's National Oil Corporation chairman Farhat Bengdara unveiled plans late last year to increase oil output from around 1.2 million barrels per day to 2.0 million bpd by 2027 but AFP notes that pro-Haftar forces blockaded Libyan oil fields between April and mid-July last year, causing production to fall to around 400,000 barrels of crude per day.