Oil firm NOC working with unity gov't, hopeful for recovery

April 2, 2016 10:43 AM

The new government received the endorsement of the PFG, a semi-official armed faction that controls key oil installations in the east, some of which it has shut down amid political disputes.

The building housing Libya's oil state energy firm, the National Oil Corporation (NOC), is seen in Tripoli, Libya February 22, 2016. REUTERS/Ismail Zitouny - RTX27ZUQ

Libyas National Oil Corporation said on Saturday it is working with the U.N.-backed unity government that arrived in Tripoli this week to coordinate future oil sales and "put a period of divisions and rivalry behind us".

NOC Chairman Mustafa Sanalla also welcomed support from the U.N. Security Council, which stated its concern on Friday over any attempts to undermine the integrity of the NOC, a reference to efforts by Libya's eastern government to sell oil independently.

"Combined with the recent announcement by the Petroleum Facilities Guard (PFG) that it intends to reopen export ports it has been blockading, I hope NOC and the country's oil resources can provide a solid platform on which the country's recovery can be built," Sanalla said in a statement.

Libya descended into political turmoil and armed conflict following an uprising that toppled long-time strongman Muammar Gaddafi in 2011, with two pairs of rival parliament and governments operating in Tripoli and the country's east.

Its oil production has been slashed by rivalry between armed factions, and attacks by Islamic State militants and labour disputes, falling to less than a quarter of a the 1.6 million barrels per day produced before the uprising.

The unity government emerged from a U.N.-mediated deal signed in December that has faced continuing opposition from hardliners inside Libya.

Its leaders travelled to Tripoli on Wednesday and have been operating out of a heavily secured naval base in the capital as they seek to gain control of government ministries and financial institutions.

PFG spokesman Ali al-Hassi said on Thursday that the guard was prepared to reopen eastern oil terminals at Zuetina, Es Sider, and Ras Lanuf, though he could not say when this might happen.

The latter two ports have been repeatedly attacked and damaged by Islamic State.