Libyan National Oil Corporation welcomes oil restart proposal after warring rivals announce ceasefire

Libya’s National Oil Corporation welcomed new proposals from both warring rivals in the country to lift a seven-month oil blockade and place revenues in a special bank account until a political deal is reached.

“NOC reiterates its call for all oil facilities to be freed from military occupation to ensure the security and safety of its workers,” the state oil producer said.

Tripoli-based NOC also said it was “making all possible efforts to provide a ship to empty condensate tanks” in eastern Libya, after authorities there said they would allow the shipment of oil and gas products to ease a power supply crisis.

Factions based in east and west Libya, both backed by foreign allies, have been vying for power for years, with the distribution of oil revenue a key source of tension.

The blockade was imposed by the eastern-based Libyan National Army (LNA) and its allies in January, reducing Libya’s oil production from around 1.2 million barrels per day (bpd) to less than 100,000 bpd. The NOC estimates losses at more than $8 billion.