Tag Archives: Oil

The Illegal Trafficking in Crude Oil and Petroleum Products from Libya and the Relationship Between Italy and Malta

Control over oil resources has been a key factor in the situation of civil war and political turmoil that has affected Libya in this decade.[1] Already in 2011, a turning point in the struggle against the Qhadafi Government took place when the insurgents of the Transitional National Council proved that, by controlling the eastern ports of Brega and Ras Lanuf, they were able to trade in oil with foreign corporations.[2] In the ensuing period, and especially between 2014 and 2018, the competition between rival governments was constantly mirrored by the struggle to gain control over oil resources and, most notably, over the National Oil Corporation (NOC).[3] In 2014, in a paradoxical twist of history, the stability of the revolutionary government that had ousted Qhadafi was seriously put into question when a group of “Petroleum Facilities Guards”, led by a Ibrahim Jadhran, came to control the same eastern ports that had been instrumental to the demise of the previous ruler.[4] A stateless tanker was able to leave port against the will of the Tripoli Government and was subsequently inspected, seized on the high seas, and brought back to port in Libya by an operation of the US Navy.[5] In 2015, the House of Representatives of Tobruk attempted to establish a new National Oil Corporation with headquarters in eastern Libya claiming that the NOC based in Tripoli had no legitimacy and that new contracts had to be negotiated with the eastern NOC.[6] The initiative had little success as the NOC and the UN-backed Government of National Accord (GNA) based in Tripoli remained the sole official interlocutors of the international corporations operating in Libya.[7] However, the situation of uncertainty with respect to control over the main oil fields of the country persisted.[8] In July 2018, when the Libyan National Army (LNA) of General Khalifa Haftar took control of the eastern oil fields, attempts to sell oil through the eastern-based oil corporation started again, allegedly with the assistance of the United Arab Emirates.[9] This prompted a reaction by the United States, France, the United Kingdom and Italy, which is commented upon here below.

Repeated attempts to illicitly export oil from Libya were condemned by the UN Security Council, which clearly supported the position of the GNA. With Resolution 2146 (2014) the Council requested that the GNA contact the Sanctions Committee previously established by Resolution 1970 (2011) “to inform the Committee of any vessels transporting crude oil illicitly exported from Libya”.[10] The Resolution then authorized Member States, after seeking consent by the vessel’s flag State, “to use all measures commensurate to the specific circumstances […] to […] direct the vessel to take appropriate actions to return the crude oil, with the consent of and in coordination with the Government of Libya, to Libya”.[11] Moreover, it was made clear that all Member States were under an obligation to “take the necessary measures to require their nationals and entities and individuals in their territory not to engage in any financial transactions with respect to such crude oil from Libya aboard vessels designated by the Committee”.[12] Subsequently, Resolution 2174 (2014) expanded the reasons for listing individuals and entities in the sanctions lists mentioning explicitly those “providing support for armed groups or criminal networks through the illicit exploitation of crude oil or any other natural resources in Libya”.[13] Resolution 2362 (2017) expanded the applicability of the measures adopted with Resolution 2146 (2014) to petroleum, including crude oil and refined petroleum products. In a number of resolutions, the Security Council reiterated that the resources of Libya must remain under the sole control and authority of the GNA and the NOC of Tripoli.[14]

Within this context, the position of the Italian Government has consistently supported the GNA by affirming clearly that the right to control and administer the oil resources of the country pertained exclusively to the NOC. During the course of 2018, Italy participated in the adoption of two joint statements (together with France, the United Kingdom and the United States) dealing directly with the issue of control over Libyan oil resources.

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