Islamist militias push to take Libyan oil

CAIRO -- Libya's foreign minister said Sunday that extremist groups are making a renewed push to seize oil resources after an assault on eastern terminals set storage tanks ablaze, sending clouds of black smoke into the sky.

Foreign Minister Mohamed Dayri, speaking in Cairo, said the assault was carried out by militias based in the western city of Misrata and loyal to the rival, Islamist-backed government in Tripoli. He said extremist groups have joined the attack, which forced a shutdown of the country's largest shipping terminal.

An oil corporation official, Mohammed al-Harari, said late Saturday that 850,000 barrels of oil were lost because of the fire in five storage tanks.

Fighting has broken out around Libya's largest oil terminal, Sidra, which is currently under the control of anti-Islamist militiamen allied with the internationally recognized government based in the far-eastern city of Tobruk. The Tripoli-based government had vowed to "liberate" Sidra earlier this month.

The tanks have a capacity of 6.2 million barrels, or four times the country's daily oil-production capacity, al-Harari said.

"It is a disaster threatening the lives of thousands of people," Libya's Ministry of Oil and Gas said on its website. "The fire smoke covers the city's residential area in Ras Lanuf." International assistance is being sought because the fires may lead to environmental damage in the Mediterranean Sea, Ali al-Hasy, a spokesman for the Petroleum Facilities Guard, said.

Airstrikes were reported Sunday in Misrata for the first time, in what appeared to be a response to the attack on the oil terminals. Ahmed al-Musmari, spokesman for the Tobruk-led army, told Libya's al-Wasat news website that airstrikes targeted bases used to attack his troops.

A security official in Misrata said the airstrikes were near the airport, with one missile striking 300 meters from an airport tower but missing the tarmac. The official, who spoke anonymously because he was not authorized to brief reporters, said the airstrike caused the suspension of a Turkish Airlines flight but no casualties.

Dayri, the foreign minister for the Tobruk government, said extremists, some of whom have pledged allegiance to the Islamic State extremist group, have expanded their presence in Libya, including in the capital.

"We as Libyans are concerned. But the Arab world and the international community should be, too, because of the desire of these extremist terrorist groups to reach oil resources and revenues. This is a dangerous matter," Dayri said.

U.N.-sponsored talks between the rival governments are scheduled for Jan. 5. The U.N. Support Mission in Libya condemned the airstrikes in Misrata.

Libya, holder of Africa's largest crude reserves, has been in a civil war since 2011 when dictator Moammar Gadhafi died after a 42-year rule. The fires at Sidra started Thursday after Libya's oil guard gave Islamist militias an ultimatum.

Oil prices initially rallied Friday after the fires heightened speculation of reduced output. Brent oil settled 1.3 percent lower at $59.45 a barrel.

The Petroleum Facilities Guard is overseen by the internationally recognized government of Prime Minister Abdullah al-Thinni. Shipments from Sidra and the neighboring Ras Lanuf oil port, Libya's third-largest facility, halted this month after the self-proclaimed, Islamist-backed government of Omar al-Hassi ordered the capture of export terminals controlled by al-Thinni's government.

Libya's oil production was 580,000 barrels a day in November, down from 1.59 million barrels a day at end of 2010, according to data compiled by Bloomberg. Its capacity is 1.55 million barrels. The fighting has caused production to decline to 352,000 barrels a day, al-Harari said Friday.

Information for this article was contributed by Sarah El Deeb of The Associated Press and by Ayman Kekly, Saleh Sarrar and Maher Chmaytelli of Bloomberg News.

A Section on 12/29/2014

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