Libya set to resume full oil production after eastern parliament approves new central bank governor

Libya's eastern parliament has approved the appointment of Naji Issa as the governor of the nation's central bank, alongside Mari Muftah Rahil Barrasi as his deputy. This development, reported by Bloomberg, is expected to facilitate the imminent resumption of oil production and potentially ease the country’s ongoing political crisis.

Libya’s oil production, which is concentrated in the eastern region, had sharply decreased from 1.2 million barrels per day to approximately 350,000 in late August. The drop was the result of a dispute over control of the central bank.

The political turmoil began in August when Mohamed al-Menfi, the head of the Tripoli-based Presidential Council, dismissed long-serving central bank governor Sadiq al-Kabir. In response, the Benghazi-based government, which is aligned with military leader Khalifa Haftar, halted oil production in retaliation.

Following United Nations intervention, Libya’s rival administrations reached an agreement last week to appoint new leadership for the central bank, a move that is hoped will reduce the long-standing tensions between the two governments.

Speaking to reporters at the United Nations in New York last week, Menfi expressed optimism about the agreement, suggesting it could "resolve all the political issues" in the country, as reported by The Guardian.

However, skepticism remains. Despite a UN-backed ceasefire between the factions in 2020, which ended large-scale fighting, the peace agreement has yet to bring about the promised nationwide elections.