US Supports Holding Libyan Elections, Preserving Oil Resources

US Special Envoy and Ambassador to Libya Richard Norland with MP Abdul-Salam Nassiya in Tunis (US Embassy)
US Special Envoy and Ambassador to Libya Richard Norland with MP Abdul-Salam Nassiya in Tunis (US Embassy)
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US Supports Holding Libyan Elections, Preserving Oil Resources

US Special Envoy and Ambassador to Libya Richard Norland with MP Abdul-Salam Nassiya in Tunis (US Embassy)
US Special Envoy and Ambassador to Libya Richard Norland with MP Abdul-Salam Nassiya in Tunis (US Embassy)

US Special Envoy and Ambassador to Libya Richard Norland has met with MP Abdul-Salam Nassiya in Tunis to discuss the important efforts underway to support Libyans’ demand to hold elections.

The US will continue to support this effort and work with all sides in Libya with the goal of completing Libya’s transition to a democratic, stable, and prosperous country, Norland said.

A statement issued by Speaker of Parliament Aguila Saleh on Saturday ordered the freezing of oil revenues in the Foreign Bank of Libya until establishing safeguards and a mechanism to ensure that all Libyans benefit from this income, "in a manner that achieves justice and equality for all.”

Washington has reiterated support for the temporary freezing of oil revenues in the National Oil Corporation (NOC) account at the Libyan Foreign Bank until reaching an agreement on a revenue management mechanism.

A statement issued by the US Embassy in Libya said Saturday that an agreement on a mechanism for transparent management of oil revenues is imperative for restoring Libya's oil production.

"The Mechanism should incorporate agreement on priority expenditures, transparency measures, and steps to ensure oversight and accountability," the embassy said.

It affirmed Washington's willingness to provide technical assistance at the request of the Libyan parties to assist in setting up such a mechanism, emphasizing that progress on such important issues will contribute to creating a more stable political environment that will help restore momentum toward parliamentary and presidential elections.



Iraq's Kurdish Oil Exports Restart is Not Imminent

An oil field in Iraqi Kurdistan. Photo: Kurdistan government media/AFP
An oil field in Iraqi Kurdistan. Photo: Kurdistan government media/AFP
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Iraq's Kurdish Oil Exports Restart is Not Imminent

An oil field in Iraqi Kurdistan. Photo: Kurdistan government media/AFP
An oil field in Iraqi Kurdistan. Photo: Kurdistan government media/AFP

A restart of Iraq's Kurdish oil exports is not imminent, sources close to the matter said on Friday, despite Iraq's federal government saying on Thursday that shipments would resume immediately.

Baghdad and the Kurdistan Regional Government have been in negotiations since February to end a stand-off that has halted flows from the north of the country to Türkiye's port of Ceyhan. The KRG was producing about 435,000 barrels per day (bpd) before the pipeline closure in March 2023, Reuters reported.

On Thursday the federal government said that Iraqi Kurdistan would resume oil exports immediately through the pipeline to Türkiye's despite drone attacks that have shut down half of the region's output.

But on Friday a source at APIKUR, a group of oil companies working in Kurdistan, said that a restart depended on the receipt of written agreements. Another at KAR Group, which operates the pipeline, said that no preparations had been made for a restart.

Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said, while a source at Türkiye's Ceyhan said there was also no preparation at the terminal for a restart of flows.

On Thursday, a statement from KRG Prime Minister Masrour Barzani said the government had approved a joint understanding with the federal government and it was awaiting financial details.

Similar agreements in the past failed to secure a resumption in exports and it remains unclear if this deal will succeed.

Oil companies working in Kurdistan have previously demanded that their production-sharing contracts should remain unchanged and their debts of nearly $1 billion be settled under any agreement.

Oilfields in Iraqi Kurdistan have been attacked by drones this week, with officials pointing to Iran-backed militias as the likely source of the attacks, although no group has claimed responsibility.

They are the first such attacks on oilfields in the region and coincide with the first attacks in seven months on shipping in the Red Sea by Iran-aligned Houthi militants in Yemen.

On Thursday a strike hit an oilfield operated by Norway's DNO in Tawke, the region's counter-terrorism service said.

It was the week's second strike on a site operated by DNO, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Türkiye.

No casualties have been reported, but oil output in the region has been cut by between 140,000 bpd and 150,000 bpd, two energy officials said.