ASSESSMENTS

Libya Makes Tentative Steps Toward Restarting Oil Production

Apr 7, 2014 | 18:18 GMT

Libya Makes Tentative Steps Toward Restarting Oil Production
The Morning Glory unloads oil at the Libyan sea port of Zawiya, April 4. Successful negotiations could see eastern terminals reopen for oil exports within weeks.

(MAHMUD TURKIA/AFP/Getty Images)

Summary

A preliminary agreement to restart oil production was reached in Tripoli on April 6. Ibrahim Jadhran, the leader of the blockade that has kept Libya's eastern oil terminals offline since August 2013, announced an accord with members of the embattled national government, ending nearly eight months of stalemate. Any deal that could see the majority of Libyan oil exports return to global markets will be significant for both international trade and Libya's domestic economy, which relies almost completely on oil revenue.

Although Jadhran, his designated political representatives and some members of Libya's national government are heralding the April 6 agreement as a road to reconciliation, many challenges still remain before Libya can return to stable, sustainable levels of production resembling the post-revolutionary gains seen in 2012.

Despite positive signs, major uncertainty still surrounds the future of potential oil exports in the divided country....

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