INTERVIEW-Struggle over Libya's oil risks breaking up country -rival PM
Fri Nov 28, 2014 1:30pm GMT
* Libya has two prime ministers competing for legitimacy
* Unrecognized PM warns conflict could break up country
* Traders wonder who controls Africa's largest oil reserves
By Ulf Laessing
TRIPOLI, Nov 28 (Reuters) - Libya's self-proclaimed prime minister has
warned that attempts by a rival government in the east to assert control
over the oil industry could escalate the political conflict dividing the
OPEC member state and force it to break in two.
Libya has had two governments competing for power since August when a group
called Operation Libya Dawn, which opponents say is backed by Islamists,
seized Tripoli and forced the elected Prime Minister Abdullah al-Thinni to
flee 1,000 km to a small city near the border with Egypt.
Both sides have so far avoided talking publicly about prospect of a split.
The warning by Omar al-Hassi, prime minister of the rival government, came
after Thinni's government claimed air strikes on Tripoli's Mitigate airport
this week, escalating a confrontation that started with an attack by Libya
Dawn on a rival force in Tripoli in July.
The new rulers in the capital are not recognised by the United Nations and
world powers but have taken over ministries, oil facilities, airports and
much of western and central Libya.
In a step to assert control over the oil industry, Thinni's government said
on Wednesday it had appointed a new chairman of the National Oil Corp.
Thinni had initially retained the state oil firm's previous head, Mustafa
Sanallah, but he remains in Tripoli.
The conflict gripping Libya three years after the overthrow of Muammar
Gaddafi poses a legal dilemma for oil traders, who are left wondering who
owns Libya's oil exports, worth more that $10 billion a year. The country
sits on Africa's largest oil reserves.
"Libya's oil has become part of the war," Hassi told Reuters in an
interview. "We had hoped that oil would not be part of this conflict."
Hassi said Libya might break up if the international community allowed
Thinni to appoint its own NOC chairman and eventually form an eastern oil
company.
FUTURE PROBLEM
"Helping to create a new oil company means helping to break up Libya," Hassi
said late on Thursday, sitting in Thinni's old office. "The West will be
responsible for this problem in the future."
Hassi said the NOC appointment was an attempt to take over oil facilities in
the east with the help of a former general, Khalifa Haftar, whose armed
group has merged with the army in the east to fight enemies he describes
Islamists.
"There are attempts (by Thinni) to set up an eastern Supreme Court, there
are attempts to launch a central bank in the east, there are attempts to
establish a separate oil ministry in the east," said Hassi, who said he was
against partition.
Thinni's government has sought to move heads of state-run institutions to
the east as he is recognised by the international community, but he too
denies any plans for secession.
But Hassi said Thinni's government had shown it intended to control oil
facilities in the eastern rump state by picking al-Mabrook Bou Seif as new
NOC Chairman, since he was from the same tribe as Ibrahim Jathran, a former
rebel leader who seized eastern ports for a year to press for regional
autonomy.
Jathran, who reopened the oil ports in April in a deal with Thinni's
government, has said he will push for eastern secession if the world
recognises Hassi's government.
Hassi said OPEC had contributed to the escalation by refusing to invite his
oil minister, Mashallah Zwai, an invitation to a meeting on Thursday
attended by Thinni's delegation.
Hassi said Turkey might mediate between the two sides as it had a direct
interest due to its large business interests in Libya. The United Nations
has started a dialogue but talks have gone nowhere, diplomats say.
"Everybody respects Turkey. Turkey wants a quick solution to Libya's problem
so it can start investing. The Turkish state thinks of the economy," Hassi
said.
"Turkey uses quiet language, good language and demonstrates good political
thinking. It gives both sides the chance for dialogue, which is very
important," he said. "They think in a balanced way."
Turkey is one of the few countries to have met top Hassi officials publicly.
Ankara, which has also good relations with Thinni, had also invited Zwai to
a business forum.
"We are open to dialogue," said Hassi. "This conflict cannot be solved by
war." (Reporting by Ulf Laessing; Editing by Giles Elgood)