Still no increased oil flow out of Libya as the head of a Libyan militia says the oil terminals will remain shut down. The Militia has closed most of the country’s oil terminals for months. The militia says the government has failed to meet the group’s demands–mainly a share of revenues for their eastern region–so no more oil.

“Ibrahim Jedran, leader of the militia in eastern Libya, had promised to reopen the oil terminals Sunday following mediation from influential tribal leaders. Jedran accused the government of corruption and of ‘watering down’ his group’s demands,” reports MSN.

Jedran is the head of the so-called Political Bureau of Barqa. He is a leading advocate of a federal state in which each region has some autonomy as was the case from 1951 until 1963 under King Idris. During that period Libya was divided into three regions: Cyrenaica, or Barqa, Tripolitania and Fezzan. Similar to other Libyan regions, easterners have complained a  long time of discrimination by the central government in Tripoli.

Jedran had declared the formation of an autonomous regional government as well as the formation of a regional company to handle sales of oil in the last two months. This increased the challenge to a central government already weakened by the surge of militias. However, the central government rejected the declarations. It has not moved against the militia that shut the terminals since last summer.

“The closure of the oil terminals in eastern Libya will continue. Work will not resume there because of the failure to reach an agreement with the interim government to implement the conditions of the region,” he said in the eastern town of Ajdabiya, 480 miles (800 kilometers) southeast of Tripoli. “We will not reopen the terminals because of the corruption of the interim government which doesn’t care about the real demands of Libyans.”

“Jedran had demanded the government investigate corruption in oil sales since the fall of longtime leader Moammar Gadhafi, as well as ways to distribute revenue based on a federal system adopted in the early days of King Idris,” reports MSN.

Local tribes particularly their youth have supported Jedran, who had been in charge of securing oil terminals in the area, and continued to receive salaries from the state budget for the job until this summer.

Prime Minister Ali Zidan said  earlier this month that the government is spending billions of dollars of its foreign reserves to compensate the losses of oil revenues. Libya has been losing millions of dollars daily after production dropped from 1.4 billion barrels a day to a few thousand since the closure.

Influential tribal leader Saleh al-Atyoush, who is from the same tribe as Jedran, has been trying to mediate with the government the reopening of the terminals. He said the government had agreed to investigate the corruption allegations and to form a committee with reps from the different regions to review oil distribution and revenues. But the government will not accept changing the distribution system .

“The government agreed to two of the demands,” he said in remarks aired by Al-Nabaa Libyan TV station. Al-Atyoush disowned Jedran, saying his tribe has nothing to do with the ongoing crisis. “Our tribe supports the state.”