NOC has denied that a new revenue distribution mechanism is under discussion at the current negotiations.
“We categorically deny all the rumors about opening new accounts and distributing those revenues to three regions and percentages for that distribution,” NOC Chairman Mustafa Sanalla said.
The demands on both sides were unlikely to lead to long-term stability and production would continue to be sporadic and limited, said Iliasse Sdiqui, associate director at Whispering Bell, a risk management company covering Libya.
“The demands by the eastern tribes to resume production under a new revenue-sharing scheme, regardless of how genuine, will be perceived by the GNA and western region as political coercion to introduce reforms,” he added.
“The GNA will continue to exert pressure by maintaining force majeure. Some exports may be allowed under US pressure, but overall production will be sporadic and limited.”