Libya: Revenue Dispute Threatens Oil Exports

Libya: Revenue Dispute Threatens Oil Exports

The conflict-wracked country has surprised global oil markets in the past two months by ramping up production that had been idle since the start of the year.

At the beginning of December, it was reported that Libya was producing 1.3 million barrels of oil per day “” enough to concern policymakers at OPEC, of which Libya is a member.

Now, a row over control of the Libyan Foreign Bank (LBF) “” the body charged with receiving money from oil sales and transferring the proceeds to the country's central bank “” threatens to block receipt of oil revenues and bring production to a standstill once more.

International Crisis Group, an independent think tank that monitors conflict situations, said recently: "Fears are growing that production could shut again by the end of the year, should a dispute over the management of oil revenues remain unresolved.“

Libya put in place new mechanisms for dealing with oil sales in October when a cease-fire among warring factions allowed production to restart. But those arrangements are on the verge of collapse following disputes between the LBF, the central bank and the state-owned National Oil Corporation over who controls the revenue streams.

"The impasse raises the prospect that international monetary institutions could