Libya = "Meltdown"

[dan_s]

Libya Threat: Blow Up Crude Carriers ... --

There are six rebel groups fighting for control of Libya. It is close to "hell" for many citizens. What is left of the government needs oil revenues to fund what's left of the infrastructure, army, police, fire department, etc.

Rebels invite tankers in
Libyan separatists have thrown down the gauntlet to the government by pledging to protect tankers that arrive to lift crude from ports they control.

Libyan rebels during the 2011 civil war
The armed group said it would invite overseas companies to buy oil and ensure safe passage for vessels chartered to load in the east of the country, Reuters reported.

The move comes after Libyan forces fired on a Palmali tanker to prevent it lifting crude at Es-Sider on Sunday. The Turkish owner says it did not approach the port after state oil company NOC warned the cargo would be illegal.

Libya's defence ministry has responded by saying it would destroy any vessels loading oil from ports under the control of rebels seeking autonomy for the region.

"If a ship docks in one of the closed ports, and it does not leave the port again, then we will destroy it," said defense ministry spokesman Said Abdul Razig al-Shbahi.

Given the threat, it looks highly unlikely any shipowner would be willing to risk making such a journey, although the group says buyers are keen. Insurance cover is another potential banana-skin.

The rebels control a potential output of 600,000 barrels per day.

They are led by 2011 civil war hero Ibrahim Jathran.

"We welcome global oil companies. The oil security guards will guarantee the safety of tankers," said the movement’s self-titled prime minister Abd-Rabbo al-Barassi.

He added that a newly founded oil company called Libya Oil and Gas Corp would be dealing with potential buyers.

But Barassi said his group had nothing to do with the Baku incident, calling claims it was booked to load in Es-Sider a government lie.

TANKERS
GARY DIXON IN LONDON 08 January 2014, 15:20 GMT