Glencore secures Libya oil contract
Media accounts Nov. 20 report that Glencore, the commodity trader with global mining operations, has secured a deal with Libya’s National Oil Corporation (NOC) to broker the nation's crude. The agreement, initiated in September with an option to renew in December, covers 150,000 barrels a day, or roughly half the amount currently being exported. According to Reuters: "Under the arrangement...Glencore loads and finds buyers for all the Sarir and Messla crude oil exported from the Marsa el-Hariga port near the country's eastern border with Egypt." The reports portray the deal as uncontroversial. The Financial Times writes: "The National Oil Corporation, along with the central bank, is one of the few institutions still functioning in Libya, where a civil war has left the country divided between an internationally recognised government in the east and an Islamist militia in the west that controls the capital Tripoli." In fact, the NOC is also divided, with feuding branches controlled by the rival regimes. Marsa el-Hariga is just outside Tobruk, exiled seat of the recognized government. We can be certain that the Glencore deal will raise protests (at least) from Tripoli.