Libyan rebels work to exempt oil from sanctions

Author: 
Angus MacSwan | Reuters
Publication Date: 
Fri, 2011-04-01 18:51

Ali Tarhouni, the rebel official in charge of economic, financial and oil matters, said Qatar would provide fuel, medicine, food and other humanitarian needs to rebels as part of a deal to market oil from the rebel-held east of the country.
Much of Libyan oil production comes from fields in the east of Libya, an area controlled by rebels seeking to oust Muammar Qaddafi. But output has dwindled because shipments have halted, and there is limited storage and refining capacity.
UN diplomats in New York said on Monday that UN sanctions on Libya did not bar rebels from exporting oil as long as they bypass firms linked to Qaddafi.
“Our demands are simple and clear. Our top priority is lifting the sanctions that stop us exporting our oil,” Tarhouni told a news conference, adding the issue of lifting sanctions had been raised with a visiting UN envoy, Abdelilah Al-Khatib.
He said that Khatib, who was in the rebel-held stronghold of Benghazi, had responded that he would convey the rebel request to the United Nations.
Speaking earlier in the day, Tarhouni said: “What we want is an exemption from the sanctions. This is our main problem. It is very hard for us, it is an obstacle.”
He said rebels were discussing an exemption with what he described as “friends” in the international community, but did not give details.
Qatar recognized Libyan rebels on Monday, a day after rebels said the Gulf Arab state had agreed to market crude oil produced from east Libyan fields no longer under the control of Qaddafi.
 

Providing further details of that deal, Tarhouni said: “The Qataris agreed they would market crude oil for us, and we would put the money in an escrow account. We will receive what we need in fuel, medicine, food and humanitarian needs from them.”
Tarhouni said rebels had set up a “quasi-ministry of oil” and that oil staff were now working under that body or for the east-based Arabian Gulf Oil Company (Agoco), which has said it has cut ties with its parent, state-owned National Oil Corp.
Rebels continue to provide basic domestic fuel needs, although toward the frontline of fighting during a rapid advance by rebel forces earlier this week supply lines were stretched and some fuel stations ran out of petrol.
Rebels had controlled all the oil terminals in the east briefly this week but were ejected after Qaddafi’s forces bombarded their positions and chased them back east.
Qaddafi’s forces now control Ras Lanuf and Es Sider, while Brega is now on the frontline and rebels control Zueitina and Tobruk further east.
Asked how the loss of Ras Lanuf or Brega could affect the Qatari pact, Tarhouni said: “The deal has nothing to do with Brega and Ras Lanuf. We are talking about oil production in the southeast. The oil that flows from there is stored in liberated areas,” adding that the oil would be exported from Tobruk.
“The only delay is finding vessels that will carry the oil. That is the only obstacle we have,” he said.
Officials of Agoco, the main producer based in the east, have said production was running about a quarter of the more than 400,000 barrels per day the company produces under normal conditions.
UN Security Council resolutions 1970 and 1973 slapped sanctions on Qaddafi, his family and inner circle, the National Oil Corp, the central bank and other firms linked to Qaddafi.

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