Tripoli Orders Arrest of Libyan Oil Minister on Corruption Charges

Just a day after Libya was forced, once again, to reduce oil production from its largest field, Sharara, over protests, the Tripoli-based Libyan Prosecutor’s Office has ordered the arrest of the country’s oil minister on corruption charges, according to Libyan media reports. 

An arrest warrant was ordered on Wednesday for Oil Minister Khalifa Abdul-Sadiq on charges of corruption in connection to a reported 600,000 euros used “for the benefit of a foreign company”, according to the Libya Observer, citing the arrest order. 

The post of oil minister in LIbya has been embroiled in controversy for months, and for all intents and purposes, Libya has had dueling oil ministers since March. 

In March, then-Oil Minister Mohamed Oun was suspended pending an investigation, and temporarily replaced him with Abdul-Sadiq. In May, Oun was cleared of wrongdoing, the investigation was wrapped up, and he was officially presumed fit to maintain his position as oil minister. However, at that time, Prime MInister Abdul Hamid Dbeibeh, head of Libya's Tripoli-based government, reportedly ordered Abdul-Sadiq to refuse to hand power back over to Oun, leaving the country essentially with two oil ministers working at cross purposes. 

Then, this week, an arrest warrant was issued for Abdul-Sadiq, with Oun watching from the sidelines after demanding clarification in early July as to who is actually the oil minister. At the time, Oun had said he was voluntarily suspending himself from the post until he received clarification. 

Now, with Abdul-Sadiq under arrest, it remains unclear whether the country still has an oil minister, and whether Oun will also be replaced. 

In the meantime, reports are emerging from Libya that the protests that have once again caused a partial shutdown of Libya’s Sharara oilfield may not have been organic. The Libya Observer has speculated that General Khalifa Haftar, behind the rival government forces in the east, may have orchestrated the protests and forced a shutdown in retaliation for his brief detention by Italian authorities in Rome just days ago on a Spanish arrest warrant connected to charges of weapons smuggling. Spain’s Repsol oil and gas company is one of the JV partners in Sharara.  

As of Libyan media reports on Wednesday, Sharara was pumping 200,000 bpd, down from 270,000 bpd. The field has a capacity of 300,000 bpd. 

By Charles Kennedy for Oilprice.com

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