Libya's two legislative bodies agreed to jointly appoint a central bank governor, a move that could help resolve the conflict over control of the country's oil revenue, which has led to reduced production.

The House of Representatives, based in Benghazi, and the High State Council in Tripoli signed a joint statement following two days of negotiations facilitated by the UN Support Mission in Libya. They committed to appointing a central bank governor and a board of directors within the next 30 days.

Libya's central bank, which manages the nation's oil revenue and handles state salaries, is a critical institution. The two legislative bodies also agreed to extend their consultations by five days, with the process set to conclude on September 9.

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The House of Representatives and the High State Council, both internationally recognized under a 2015 political agreement, have supported opposing sides throughout much of Libya's crisis.

The current standoff began when the head of the Presidency Council in Tripoli attempted to remove veteran central bank Governor Sadiq al-Kabir last month and replace him with a rival board.

In response, factions in the east of Libya declared a halt to all oil production, demanding that the dismissal of al-Kabir be reversed. This dispute jeopardized the relative stability in place for the past four years.

Last week, Libya's prime minister under the National Unity Government, Abdul Hamid Dbeibeh, warned of the "danger of shutting down oil fields in the country," stating that such actions should not be permitted under "flimsy pretexts", and that those responsible for these "reprehensible actions" should be held accountable for "committing what amounts to a criminal offense."

During a meeting with Stephanie Khoury, acting head of the UN Mission in Libya, Dbeibeh emphasized the importance of "cooperating with the United Nations to achieve consensus and overcome current crises."

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