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.
Jedran has wide support among local tribes, particularly their youth. He 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.
He had indicated that his group has "other options" if the government refuses the conditions. He didn't elaborate.
Earlier this month, Prime Minister Ali Zidan said 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 every day after production dropped from 1.4 billion barrels a day to a few thousand since the closure.
On Friday, Zidan said the government can force open the terminals but would rather avoid the bloodshed.
Influential tribal leader Saleh al-Atyoush, who is from the same tribe as Jedran, had mediated with the government the reopening of the terminals on Sunday. He said the government had agreed to investigate the corruption allegations and to form a committee with regional representatives to review oil distribution and revenues. But al-Atyoush said the government will not accept changing the distribution system in a way that would legitimize a federal 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."