Libyan rebels form own oil company as a challenge to the government
The move by militias occupying fields and facilities in the eastern areas is largely symbolic but also a challenge to the central government
Former rebels who fought dictator Colonel Muammar Gaddafi and are now challenging Libya's shaky central government have announced the creation of their own oil company to sell crude from oil fields and port terminals they occupy.
For the past three months, most of Libya's oil production and exports have been halted by loosely aligned militias in the eastern region of the country that are pushing for autonomy.
They have made Prime Minister Ali Zeidan's government, which has repeatedly threatened to arrest the occupiers, look increasingly impotent. This emboldened eastern political leaders, including some former rebels, to form an autonomous regional government last month.
It’s another sign the process of forming a government is in deep disarray
The establishment of a regional oil company was largely seen as a symbolic move because few oil shipping companies would rush to challenge Tripoli authorities and Western governments that want to see a central government succeed. But the company represents another escalation of tensions over the strategic economic asset.
"It's just another sign that the political process of forming a national government is in deep disarray," said David Goldwyn, the US State Department co-ordinator for international energy affairs from 2009 to 2011.
Zeidan, who was briefly kidnapped by a militia group last month, spoke of the oil blockades in stark terms on Sunday.
"We have given these groups a week to 10 days after which the government will exercise its functions," he said. "We will act appropriately."
He urged citizens to protest the blockade of the oil fields "to avoid bloodshed and the destruction of oil infrastructure" that could result if troops are sent in.
