Feb 19 β€’ 07:04 UTC πŸ‡ͺπŸ‡ͺ Estonia ERR

Libya replaces Russian fuel supplies with those from Western traders

Libya is shifting its fuel supply sources from Russia to Western traders amid efforts to restructure its oil sector post-civil war.

Libya has initiated a significant shift in its fuel supply strategy by replacing Russian fuel imports with products sourced from Western traders. This change comes after worldwide oil companies and traders such as Vitol, Trafigura, and TotalEnergies have secured contracts for gasoline and diesel supply in Libya, supported by the country's intent to offer greater access to large Western firms while reducing dependency on Russian fuel imports. According to anonymous sources familiar with the matter, this transition reflects Libya's strategic pivot in energy sourcing, aimed at fostering international partnerships.

The move to Western traders is part of Libya’s ongoing efforts to reorganize its oil sector, which has been beleaguered by years of internal conflict following the ousting of long-time dictator Muammar Gaddafi. As the second largest oil producer in Africa, Libya has the capacity to produce approximately 1.4 million barrels of crude oil daily. However, the state lacks the necessary infrastructure for extensive processing, leading it to heavily rely on fuel imports. The decision to transition suppliers also signals a critical point in Libya's efforts to stabilize its economy by diversifying its energy sources.

With Libya issuing contracts for new suppliers for the first time in 20 years, this not only marks a pivotal moment in its oil sector but also signifies a broader geopolitical shift in energy dependence. As the country seeks to establish a more resilient and diversified energy framework, the involvement of major Western companies could enhance Libya's position in global energy markets while supporting its recovery from years of turmoil.

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