Statement by NOC:
NOC Chairman Mustafa Sanalla said he had warned the head of the interim government in Beyda, Abdalla Thinni, not to use GCC-Qatar crisis as a pretext for illegal oil exports.
Sanalla said, “UN Security Council Resolutions and a slew of statements by the international community recognize NOC as the legitimate seller of oil on international markets.
As I think is obvious by now, we do not take sides in the Libyan political conflict. Our job is to protect and make the best possible use of Libya’s oil wealth, maximizing Libyan oil production and oil sales revenues for the benefit of all Libyans.” “NOC has never awarded contracts to benefit anybody but Libya,” he said. “We act in the Libyan national interest, not in the interests of foreign entities.” Sanalla said contracts signed by Nagi el-Moghrabi, appointed acting chairman of a parallel institution by Thinni, were with companies NOC would not accept as counterparties, and could cost Libya billions of dollars in lost revenue if they were ever implemented.
Sanalla warned Thinni against attempting further “irresponsible” port blockades, saying, “this will only bring further suffering to the Libyan people. It will reduce our national revenues and our ability to pay for vital commodities – fuel, food, power, medicines. It will devalue the dinar even further.
Sanalla concluded his letter by saying “We respect the Libyan National Army General Command for its responsible opposition to port blockades. It is clear they oppose Jadhran and Nagi tactics. They understand they are the path to Libya’s collapse. I hope you will take notice of their wise position on this matter.
Tripoli June13, 2017
NOC and Wintershall signed a memorandum of understanding (MOU) on August 26, 2010, to extend Wintershall’s 50-year concession for areas NC-96 and NC-97 and to convert to EPSA IV terms, in line with other foreign operators in Libya.
Wintershall’s concession otherwise expired on March 27, 2016. Zuetina port, from which NC-96 and NC-97 production is exported, was blockaded by units of the Petroleum Facilities Guards at that time. Wintershall restarted production on September 16, 2016, when force majeure was lifted at Zuetina, and shut production on March 7, 2017. In the interim period, NOC and Wintershall held a number of meetings to discuss implementing the 2010 MOU. Wintershall chose not to honor its commitments and was not included in the latest loading plans as a consequence.
If Wintershall kept to its agreements, including seeking a resolution by arbitration, production and exports could continue. Instead, it has tried to interfere in Libyan internal politics and to take advantage of the weakness of the state.
10 May 2017
A report by Jason Pack of the US-Libya Business Association (USLBA) – Washington DC, 21 April 2017.
Click the following link for the full report: Liquidity-Crunch-in-Libya-report-USLBA-210417-LH
NB: Publishing this report for general information does not mean endorsement by Libyan Lines.
National Oil Corporation (NOC) and ENI North Africa Libya (Operator), being partners in an Exploration and Production Sharing Agreement (EPSA IV) signed in June 2008, announce a New Gas/Condensate Discovery in Contract Area ‘D’ (NC41) in Tripoli-Sabratah Basin, Offshore Libya.
The discovery exploration Well B1-16/3 is located approximately 140 km from the Libyan Capital Tripoli City and 5 km to the North of the producing Bahr Essalam Gas Field. The well was drilled in water depth of about 150 m and reached a total depth of 9780 feet (2981 meter).
The production test results are summarized in the following Table:
National Oil Corporation (NOC) today reasserted that it is the only body authorized by United Nations resolutions to export crude oil and oil products from Libya.
NOC confirmed that term contracts covering the entire production for 2017 for all Libyan crude grades have already been entered with 16 international oil companies. Only these companies are legally contracted to buy Libyan crude oil and to charter shipping tankers from Libyan ports for 2017. The companies are the following: ENI, Total, OMV, Repsol, Rosneft, LukOil, Cepsa, Saras, API, Glencore, Socar, Unipec, Vitol, Gunvor, Petraco, and BB Energy.
NOC identified a group of individuals abusing the status of political division in Libya by entering into illegal contracts with unknown or unqualified companies.
NOC said these individuals, and others associated with them, have offered Libyan crude oil for sale at huge discounts below the Official Selling Price (OSP). if implemented the losses to the state of Libya of these contracts would be hundreds of millions of dollars in lost revenue.
NOC warned the maritime market and crude oil market that these contracts are illegal and that entering into them may lead to serious legal consequences and financial losses. NOC does not accept responsibly or liability whatsoever for any loss or damage incurred as the result of entering into contracts with unauthorized individuals.
NOC also confirmed that all crude oil exports are paid by documentary letters of credit, and at the Official Selling Price (OSP) without any discount.
NOC – Tripoli 26.03.2017
Libya’s National Oil Corporation today said it would begin work immediately to restart exports from Oil Crescent ports.
“We welcome statements from the Libyan National Army allied with House of Representatives and the president of the HoR, Aguila Saleh, that the ports should be placed under NOC’s control,” said NOC chairman Mustafa Sanalla. “ our technical teams already started assessing what needs to be done to lift force majeure and restart exports as soon as possible.”
“As Libyans we have a common interest in keeping our oil flowing. By raising oil production and exports we can reduce our budget deficit and pay for vital services.”
“We can raise production to 600,000 b/d within four weeks and to 950,000 b/d by the end of the year from around 290,000 b/d at present. However, this is dependent on receiving essential funds from the budget and on the Oil Crescent ports and the closed pipelines in the southwest being opened and kept open.”
“I hope this marks the beginning of a new phase of cooperation and coexistence between Libya’s factions, as well as an end to the use of the blockade as a political tactic.”
Under a unity agreement signed in July, NOC recognizes the Presidency Council as the highest executive authority and the House of Representatives as the highest legislative authority. A central aim of the agreement is to ensure that Libya’s oil wealth is used for the benefit of all Libyans.
all exports from Libya must be according to UN Security Council resolution 2259.