Libya Refinery Strike Casts Pall on Trump Unity Drive

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(Bloomberg) — Libya’s eastern military intelligence chief was killed in a car-bombing while a drone strike caused a fire at a crucial oil refinery in the west, the latest in a series of events casting a pall over US President Donald Trump’s push to reunify the war-torn OPEC member.

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Authorities in the east said Fawzi Al-Mansouri was killed overnight in a “treacherous terror act,” which local TV attributed to a vehicle laden with explosives. There were no further details.

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In the west, where the internationally recognized government holds sway, firefighters battled a blaze at the Zawiya refinery after a drone hit a fuel-storage tank and caused its collapse, according to National Oil Corp. chief Masoud Sulemen. 

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The attack risks worsening a fuel crisis in Libya, which has little refining capacity and imports to cover the shortfall, although there’s no immediate sign of an impact on the wider industry. After a period of relative calm, the country has been boosting oil output to its highest since 2013, according to data compiled by Bloomberg, even as the Iran war has energy markets on edge.

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There were no immediate accusations or claims of responsibility for either of the incidents, which underline the insecurity still plaguing Libya 15 years after the armed revolt that ousted long-time leader Moammar Qaddafi. 

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The North African nation, which sits atop the continent’s largest crude reserves, split into dueling administrations in 2013 and has seen sporadic fighting ever since involving myriad militias and eastern military chief Khalifa Haftar. The United Nations brokered a ceasefire about six years ago, but efforts to appoint a lasting unified government and hold elections have faltered, risking a return to violence.

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Trump’s administration has recently joined the fray, seeking a political deal that would also open the door for US economic interests. In April, troops from east and west trained together under American supervision, while Trump adviser Massad Boulos helped broker the first unified budget in more than a decade.

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There were further signs of an unraveling this week, when the central bank governor, appointed in September 2024 to help defuse a crisis between the rival governments, indicated he wants to resign.

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Naji Issa’s move hasn’t been officially confirmed or accepted by the government in the capital, Tripoli. It would usher in fresh uncertainty at the bank whose role as the key custodian of Libya’s oil wealth makes it a key prize for competing factions. 

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The Zawiya attack put out of commission a tank filled with 4.5 million liters of car fuel, with the spill threatening nearby oil facilities, according to the NOC, which declared a state of emergency in the area.

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“The waste of fuel is not just a financial loss, it may also impact the country’s fuel supply system,” NOC chief Suleman said in a Facebook post.

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On Saturday, a drone badly damaged another tank at the plant, while a similar attack hit a desalination station in the area the following day. 

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Libya has already been grappling with an electricity crisis that sparked unrest in Tripoli and demonstrations against Prime Minister Abdul Hamid Dbeibah. Last month, protesters cut gas flows to power plants and caused a key field to temporarily halt output, piling further pressure on his administration.

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(Corrects spelling of Trump adviser’s name in seventh paragraph.)

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