The war of words over who controls Libya’s oil sector has now spilled over into its operations. Last week, one of the most powerful men in Libya, National Oil Corporation (NOC) chairman Mustafa Sanallah, accused Oil and Gas Minister Mohammed Aoun of seeking to destabilize the NOC out of personal motives.
Sanallah's remarks contain more than a kernel of truth, but they could have been expressed with greater delicacy — possibly opening the path to reconciliation. To understand this sordid power struggle, it is crucial to keep in mind that Aoun was only appointed in March when the Government of National Unity (GNU) came into power so as to weaken Sanallah and appease Libya's eastern powerbrokers who had long sought his ouster. In fact, Aoun was likely chosen because years ago he was part of the breakaway “Eastern NOC” scheme to weaken Sanallah and the entire NOC as a technocratic, Tripoli-centric institution.
Sanallah's case to be the official head of all things pertaining to oil is strong. He is the undisputed head of the NOC as per international law. He has performed technical wizardry to restore production after long stoppages and has deployed his social capital to get blockading communities to resume production. Additionally, the structure of Libya's economy into semi-sovereign economic institutions, as well as the international law and UN resolutions concerning the Libyan oil sector, insulate the NOC and make it nearly impossible for a government-appointed ministry to claim authority or oversight over the NOC's actions.
Therefore, despite clearly lacking the authority to do so, Aoun had tried to have Sanallah sacked while the latter was traveling abroad, accusing Sanallah of the meaningless offense of “violating travel regulations.” Meanwhile, Aoun has publicly questioned seemingly legitimate deals between the NOC and international oil companies. Although GNU Prime Minister Abdul Hamid Dbeibah "canceled" Aoun's illegal decision to replace Sanallah, on Sept. 8, Dbeibah addressed questions from the House of Representatives (HoR) in Tobruk, during which he revealed that the board of directors of the NOC would be reshuffled. Dbeibah also stated that he would be open to the NOC headquarters being moved to Benghazi, but noted that this would not occur immediately if desired as preparations would need to be made.
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