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A rift has opened between Libyas U.N.-backed government and its powerful National Oil Corporation (NOC), threatening the fractured countrys political cohesion and its nascent petroleum-industry recovery.

On Monday, NOC Chairman Mustafa Sanalla announced that the country has built its oil production up to 760,000 barrels per day and planned to go ahead with plans to expand production to 1.1 million bpd by August of this year.

Just a few days earlier, that same official openly criticized Libyas Government of National Accord (GNA), a United Nations-backed government whose formation last year raised hopes of political unity in a nation divided by warring militant groups. Sanalla said the GNA aimed to wrest control of NOCs petroleum deals for power over Libyas economic future.

Oil profits will be the lifeblood of any successful future government in Libya. Under Gaddafis reign, fossil fuels made up over 90 percent of Tripolis revenues, which the government used to provide heavy food and consumer goods subsidies to its citizens in exchange for loyalty.

After years of internal struggle, the NOC has managed to develop a firm grip over 90 percent of Libyas oil export revenues. The company achieves this by claiming to maintain its independence from various factions vying to run the country until elections are held, but Sanallas recent statement condemning the GNA breaks from this policy.

The NOC owes its recent stability to the Libyan National Army, which operates under strict orders from Khalifa Haftar. The Gaddafi-era generala U.S. citizen who lived in the United States for 20 yearshas managed to defend the nations oilfields and prevent rival groups from interfering with production operations. Related:OPEC Has Failed

Haftars maneuvering has ushered in a period of stability in Libya, which has earned him a say in political matters. Russian President Vladimir Putin has taken note of the burgeoning figure, offering him weapons, tours of Russian vessels, and direct access to senior Russian officials..

Sanallas attack on the GNAs credibility and alleged sabotage of the NOCs work signals a shift in favor away from the pro-Western United Nations and towards Russian interests. Haftar and GNA Prime Minister Fayez al-Sarraj have long been at odds as well.

The latest conflict occurred in February in Cairo, a city considered to be Haftars home turf due to Egypts backing of LNA military ventures via air strikes. The generals departure from the Egyptian Capital without meeting with al-Sarraj caused him to lose aerial support from Libyas eastern neighbor as well as from the United Arab Emirates.

The NOC remains the most powerful domestic factor in the Libyan political arena due to its power over the oil resources necessary for the reconstruction of major cities affected by six years of civil war. Haftar and his LNA is the greatest military strength in the country. Both parties distance from the GNA suggests the international communitys plan for the future of Libya inches closer to complete failure each day.

By Zainab Calcuttawala for Oilprice.com

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Oil Politics Driving Libya Closer To Failure - OilPrice.com

Libyas crude productionrebounded to more than 700,000 barrels a day as the OPEC members biggest oil field and another deposit in its western region resumed pumping after a halt.

The Sharara field is currently producing 216,400 barrels a day, while the El Feel, or Elephant, depositis pumping 26,500 and is expected to boost output further, Jadalla Alaokali, a board member at the National Oil Corp., said Sunday by phone.Crude from Sharara started flowing to the Zawiya refinery after the port of Zawiya re-opened last week following a three-week closure. El Feel, idled since April 2015, also restarted last week.

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Clashes between armed groups and closures of fields have disrupted output as the country with Africas largest crude reserves struggles to revive its most important industry. Fighting in early March led to the closing of two of Libyas main oil terminals, forcing a number of fields to stop pumping. The ports have since reopened. Libya pumped as much as 1.6 million barrels a day before an uprising in 2011 led to a plunge in output and is currently one of the smallest producers of the Organization of Petroleum Exporting Countries.

The pipeline carrying Sharara crude to the Zawiya refinery was blocked in early April just one week after it reopened, halting production at the field. Sharara is operated by a joint venture between the NOC and Repsol SA, Total SA, OMV AG and Statoil ASA. It has a capacity of 330,000 barrels a day and was pumping 200,000, the NOC said on April 4.

El Feel, operated by a joint venture between Eni SpA and NOC, has a capacity of 90,000 barrels a day.El Feel couldnt resume production until Sharara was restarted because Sharara helps to supply electricity to El Feel.

Separately, authorities captured two tankers that were attempting to smuggle fuel from Libya and detained their crews after an exchange of gunfire, according to Ayoub Qassem, spokesman for the countrys naval forces. The coast guard seized the vessels on Thursday off the Sidi Said area west of the capital Tripoli, Qassem said. The first tanker held about 3,330 tons of diesel in its tanks, and the other had 300 tons, he said.

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Libya Oil Output Rebounds as Sharara, Feel Fields Restarted ... - Bloomberg

Much effort is being invested in the EUs military intervention in international waters off the coast of Libyaaimed atbreaking the business model of human trafficking by smugglers

Minister Carmelo Abela (left) with the EU's High Representative for Foreign and Security Policy, Federica Mogherini, and other officials at the conference

Unfortunately thereremainsa great level of instability in Libya, since the Government of National Accord is still not completely exercising its effective authority, he said. Aside from being an essential pre-condition for the welfare of the Libyan population and the resurgence of the Libyan economy, stability in Libya is also fundamental for its neighbours security.

The conference was organised in Malta by the Maltese Presidencyof the Council of the EU.

Abelasaid thatthe EU had acted with determination to counter the instability in its proximity by engaging with affected countries by means of CSDP missions.

At the same timethe EUs mechanism for peacekeeping also included a raft of measures whereby it analysed its crisis response tools,and constantly refined and updated them.

With respect to Libya, CSDP action is conducted by an EU Border Assistance Mission to Libya (EUBAM Libya),in which Maltahasparticipated.

Currently,much effort is also being invested in the EUs military intervention in international waters off the coast of Libyaaimed atbreaking the business model of human trafficking by smugglers, known as EUNAVFOR MED- Operation Sophia, in which Malta actively participates.

The CSDPcan act to provide direct benefits to crisis areas as well as visibility for the EU at the external level, especially in its immediate neighbourhood, Abela said. The CSDPprovisions enable the Union to take a leading role in peacekeeping operations, in conflict prevention and in the strengthening of international security.

The minister alsoreferredtotheEU Global Strategy set out in 2016,aimed at further stimulating the CSDPprocess and exploiting innovative approaches to countering crises and threats.

Work was still ongoing in terms of re-assessing internal mechanisms to ensure these are improved and strengthened, while also trying to deepen relations with existing partners such as the UN and NATO to act together with more effect in crisis areas where they are present.

I am confident that,if the EU continues its goodwork internally and with othersit will consolidate its strengthsand manage to go far towards more stability and peace, Abela said.

The list of speakers at the conference included the EUs High Representative for Foreign and Security Policy, FedericaMogherini.

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Stability in Libya crucial for neighbours' security - Malta Today - MaltaToday

Oil traded near $49 a barrel as rigs targeting crude in the U.S. rose for a fifteenth week and output from Libya rebounded.

Futuresin New York were little changed after gaining 0.7 percent Friday. The number of oil rigs operating in U.S. fields advanced to the most since April 2015, according to Baker Hughes Inc. Libyas crude productionrebounded to more than 700,000 barrels a day as the OPEC members biggest oil field and another deposit in its western region resumed pumping after a halt.

Oil has fallen the past two weeks amid concern growing U.S. output will offset efforts by the Organization of Petroleum Exporting Countries and its allies to trim a global glut. American production increased to the most since August 2015 and Saudi Arabias Energy Minister Khalid Al-Falih has acknowledged that the first quarter of OPEC-led curbs failed to bring stockpiles below the five-year average.

The rising U.S. rig count will continue to keep a lid on prices until we see inventories come down, said Gary Burton, a Melbourne-based analyst with IG Ltd.The price has flat-lined around this $49 mark and theres little volatility to drive the price from there.

West Texas Intermediate for June delivery traded at $49.25 a barrel on the New York Mercantile Exchange, down 8 cents at 4:10 p.m. in Sydney. Total volume traded was about 53 percent below the 100-day average. The contract on Friday increased 36 cents to $49.33.

Brent for July settlement lost 13 cents, or 0.3 percent, to $51.92 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $2.36 to July WTI. Brent for June delivery expired Friday after adding 29 cents to $51.73.

See also: Oil price optimism wears off as Texas wildcatters drill on

U.S. producers boosted the number of rigs drilling for oil by 9 to 697 machines, according to a report from Baker Hughes on Friday. Libyas Sharara field is currently producing 216,400 barrels a day, while the El Feel, or Elephant, deposit is pumping 26,500 and is expected to boost output further, Jadalla Alaokali, a board member at the National Oil Corp., said Sunday.

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Oil Steady as U.S. Drillers Boost Rigs and Libya Expands Output - Bloomberg

The Libya Observer

Health calamity could descend on Libya any minute, National Vaccination Program CEO says The Libya Observer The CEO of the Libyan National Vaccination Program, Al-Sadiq Al-Bahilil, has warned of the consequences that could take place due to the shortage of children's vaccines across the country. "I blame the Central Bank of Libya for such a crisis in the ...

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Health calamity could descend on Libya any minute, National Vaccination Program CEO says - The Libya Observer