Government representatives and rebel leader, Ibrahim Jathran who controlled three oil ports in Libya, have reached an agreement.

The seizure of the ports by Jathran’s rebel forces have crippled Libya’s petroleum industry since 2011.

Before the seizure, the north African country had a production output of 1.4 million barrels a day but has been averaging daily 150,000 barrels amid continuous strikes and rebel blockades.

After months of negotiation, a resolution has been reached.

“I officially declare this is the end of the oil crisis.” said Prime Minister Abdullah al-Thinni.

Following this agreement, the global oil price fell below $112 a barrel on Wednesday.

The regaining of the last remaining oil ports could mean that Libya’s output could increase by 500,000 barrels.

Disputes over Libya’s oil resources have been among the main sources of conflict in Libya since the insurgency that ended four decades of Muammar Gaddafi’s one-man rule in 2011.

Jathran who was one of the key militant leaders who helped defeat Gaddafi, seized three oil ports, clearly illustrating Libya’s fragile democracy.

The move cost Libya billions of dollars in petroleum revenue.