Oil production in Libya faced renewed disruption in late March 2026 as rival factions fought over control of revenue management institutions. The National Oil Corporation, nominally unified, has become a battleground between the Government of National Unity in Tripoli and the Libyan National Army-aligned government in the east. Armed groups supporting each side have threatened NOC facilities and personnel to force the appointment of officials favorable to their patrons.
The political division over oil institutions has compounded Libya’s economic crisis, with the Libyan dinar falling sharply against foreign currencies. The country remains divided between two parallel governments, each claiming legitimacy and backed by different armed factions and foreign sponsors. International efforts to reunify the oil sector have failed, with each side accusing the other of using oil revenues to finance military operations.
When oil becomes a weapon rather than a resource for all Libyans, everyone loses. This is a tragedy for the Libyan people.
Competing Institutions
Both the Tripoli government and the Benghazi-based administration have established their own central banks, oil marketing committees, and finance officials. International recognition remains divided, with some countries recognizing the Tripoli government while others deal with eastern institutions. This creates enormous confusion for international companies and undermines Libya’s ability to attract legitimate investment.
Foreign Support
Turkey continues to back the Tripoli government with military equipment and Syrian mercenaries. Egypt and the UAE support the eastern government and Field Marshal Haftar’s LNA forces. Russia has expanded its presence through private military contractors aligned with eastern forces, while the US has limited its engagement to counterterrorism operations against ISIS remnants.