Are eastern Libyan authorities pursuing greater energy engagement with China and Russia?

There have been a number of unconfirmed reports emerging regarding non-Western International Oil Corporations being in direct contact with Benghazi-based authorities to develop the region’s vast energy resources.

Considering the political situation in Libya these days, eastern Libyan authorities are feeling emboldened about their own grip over power in their territories and want to carry out more ambitious development projects to project power. However, the geopolitical competition playing out in Libya is also leading to rampant disinformation campaigns and false news targeting Libya’s energy sector. There have been a number of unconfirmed reports emerging regarding non-Western International Oil Corporations being in direct contact with Benghazi-based authorities to develop the region’s vast energy resources.

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This article was originally featured in our flagship Energy Insights report, a bi-weekly publication with insider news and deep dive analyses on Libya's energy sector that is delivered to clients ahead of time. For exclusive insights and a head start on the biggest stories in Libya, email us at editor@libyadesk.com.

A closer look

In recent months, both the Government of National Stability (GNS) and Libyan National Army (LNA) have displayed growing confidence in their ability to not only provide security to eastern Libya but also focus on development opportunities. For instance, the LNA’s development portfolio has gradually coalesced under Belgasim Haftar’s Development and Reconstruction Fund, and — according to the Central Bank of Libya (CBL) in Tripoli — eastern authorities have reportedly pursued local printing of currency, although the claim remains difficult to verify. Meanwhile, eastern Libyan authorities are enjoying a privileged relationship with National Oil Corporation (NOC) Chairman Farhat Bengdara and growing ties with CBL Governor Sadiq al-Kabir. Earlier this month, the tenth anniversary of Operation Dignity (al-Karama) demonstrated the LNA Commander-in-Chief’s confidence in his grip over power.

In many ways, the eastern authorities are increasingly acting as a full-fledged government seeking autonomy from Tripoli, thus governing its territories as a quasi-sovereign state per se. This stance is further validated by the Russian government’s strategy in Libya, which has been to view the country as a de facto divided federation of states, thus enabling Moscow to ...

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