Libya’s rival National Oil Corporations (NOCs) have decided to merge in a move to regain the country’s oil industry, which has been injured by attacks, rival export attempts and also the shutting down of pipelines and oil ports by militants.

The country’s main natural resource is oil, with reserves estimated at 48 billion bbls.

Production fell after the 2011 uprising that toppled Muammar Gaddafi as rival militias fought for the control of oil terminals, creating the emergence of two rival governments.

Libya had an output capacity of about 1.5 million bpd before the 2011 uprising, accounting for over 95% of exports and 75% of the budget.

The OPEC member’s oil exports are lower than half of the 1.6 million bpd being produced before the uprising. The country’s two major oil ports were shut down and under the control of one armed faction while other fields have been closed by the Islamic State militant.

In May 2016, sources from NOC said that oil production had begun to improve to surpass the 300,000 bpd mark.

The NOC have said that Chairman Mustafa Sanalla (photo), will retain his position while former eastern NOC head Nagi el-Maghrabi will join the unified NOC board.

“This agreement will send a very strong signal to the Libyan people and to the international community" that the presidency council of the Government of National Accord (GNA) "is able to deliver consensus and reconciliation. I’m sure it will now build on this success to bring unity and stability to other government institutions. There is only one NOC, and it serves all Libyans,” Sanalla said in a statement.

The NOC plans to combine its budget for the rest of the fiscal year and also intends to make infrastructure reintegration a priority, Reuters reports.

Anita Fatunji