Libya to resume oil production at largest field amid talks

CAIRO (AP) — Libya’s national oil company announced Sunday it is resuming production at the country’s largest oil field as rival officials from eastern and western Libya began peace talks, part of preliminary negotiations ahead a U.N.-brokered dialogue set to take place next month.

The National Oil Corporation said it has lifted the force majeure that was imposed at the southwestern Sharara oil field after it reached “an honor agreement” with forces loyal to military commander Khalifa Hifter to end “all obstructions” at the field.

The corporation's announcement comes three weeks after Hifter, who was behind a year-long military attempt to capture the capital, Tripoli, announced an end to a blockade of the nation’s vital oil fields.

The Sep. 18 breakthrough was the result of a so-called “Libyan-Libyan dialogue” led by Ahmed Matiq, the rival Tripoli government’s deputy prime minister, seeking to create a new mechanism to distribute the country’s petrodollars more equitably.

Libya’s prized, light crude has long featured in the North African country's civil war with rival militias and foreign powers jostling for control of Africa’s largest oil reserves.

Libya was plunged into chaos when a NATO-backed popular uprising in 2011 toppled longtime dictator Moammar Gadhafi, who was later killed. The country has since split between rival administrations based in the capital Tripoli and the eastern city of Benghazi, each backed by armed groups and rival foreign governments.

Meanwhile, representatives of the Benghazi-based House of Representatives and Tripoli-based High Council of State started on Sunday three-day-long U.N.-facilitated talks in the Egyptian capital, Cairo, the U.N. support mission in Libya said.

The mission said the delegations are...