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Ousting Russia: Libya Urges US to Help Replace Kremlin Oil With African Crude

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Ousting Russia: Libya Urges US to Help Replace Kremlin Oil With African Crude
Lybian, Italian and European flags wave on the facade of Palazzo Chigi, residence of Italy’s Prime Minister, ahead Libya’s UN-backed Government of National Accord meeting with Italy’s Prime Minister Giuseppe Conte in Rome, Italy. (Source: Getty Images)

Libya is courting major US and European energy companies in a bid to replace sanctioned Russian oil on global markets, pitching itself as a viable alternative supplier as demand for crude remains strong, Financial Times reported on November 23.

A Tripoli government  delegation visited Washington this week to promote Libya’s first oil exploration licensing round in 18 years, offering new production-sharing terms aimed at boosting output from 1.4 million to 2 million barrels per day by 2030. Oil giants including Shell, Chevron, TotalEnergies, Eni and Repsol have already been pre-qualified to bid, while ExxonMobil signed an offshore gas exploration deal in August.

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Libyan officials told the Financial Times that increased Libyan production could help offset supply shortfalls caused by sanctions on Russian oil. “The US and western countries are trying to prevent Russia from selling its oil. That would bring a shortage in the energy market—and Libya can be an alternative,” said Ibrahim Sahed of Libya’s High Council of State.

The delegation also urged Washington to help push Russian military presence out of Libya, particularly from areas controlled by eastern commander Khalifa Haftar, a longtime Kremlin ally.

Despite Libya’s fragmentation between rival governments and armed groups, Western energy companies have been returning, encouraged by more attractive investment terms and the country’s vast untapped reserves.

Shell and BP renewed cooperation with Libya’s National Oil Corporation (NOC) in July, while the petroleum ministry and NOC have signed a memorandum of understanding with Chevron and held talks with ConocoPhillips, according to Financial Times.

Analysts warn that new investment could further entrench Libya’s fractured political landscape, but say stronger Western involvement might also help stabilise the country. As global majors search for new reserves, Libya is positioning itself as both an energy partner and a geopolitical counterweight to Russia.

Previously, it was reported that the Kremlin was systematically restoring a network of airbases in Libya to support Russian military operations across Africa, including activities involving the so-called “African Corps” of the Russian Defense Ministry, analysis by the Jamestown Foundation reported.

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The Government of National Unity is the internationally recognised government of Libya formed on 10 March 2021 to unify the rival Government of National Accord based in Tripoli and the Second Al-Thani Cabinet, based in Tobruk.

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