The government’s plan to develop the oil sector, which caused the National Oil Corporation to lift the block on revenues

Our source obtained exclusively the resolution of the Prime Minister of the Government of National Unity Abdul Hamid Dbeibeh N° 154 of 2022 regarding the development of the oil sector, which aims to transfer the value of its financial obligations and budget, and address the conditions of its employees with the assignment of an international consulting office working with the Audit Bureau to complete the development plan of the institution, with reference at the end of the items that that the Corporation will transfer the oil revenues from the external bank as the previous mechanism.

The resolution stipulated in the first item and the existing obligations to transfer the value of the accumulated obligations on the National Oil Corporation with a total of 6,435,601,000 in the account of the National Oil Corporation, within two weeks from the date of signing this report, provided that it is subject to the control of the Libyan Audit Bureau and in line with the applicable laws. As well as in the second item, dealing with the conditions of the employees of the National Oil Corporation and its subsidiaries who did not receive their salaries and the due bonuses, within a month from the date of signing this report, in addition to settling the administrative and financial conditions of the employees of the National Oil Corporation and its subsidiaries.

The resolution added also in the third item, which includes the proposed development plan for the National Oil Corporation, to open the door for discussion on the proposed development plan and strategy for the National Oil Corporation to the Council of Ministers of National Unity Government, in addition to preparing a general vision for the Corporation’s budget for the year of 2022 and how to cover it according to the chapters and its components. Also, opening the door for discussion on the budget of the Corporation during 2022, in addition to issuing a resolution by the Council of Ministers for the Government National Unity that provides for the adoption of temporary and emergency financial arrangements for the Corporation for 2022 (according to the attached statement) aiming at the following: Transferring the value of the existing obligations with a total value of 6,435,601,000 to the account of the National Oil Corporation, as referred to above, provided that it is subject to the oversight of the Audit Bureau and does not contradict the laws and legislations in force. Second, financing the Corporation’s plan for 2022 on all other spending sections to bring production to about 1.450 million barrels per day by the end of 2022, provided that the Corporation proceeds with the implementation of what is expected of it through a clearly defined plan and a specific and clear time. Third, the liquidation of financial allocations is in accordance with cash flows and is subject to the supervision of the Ministry of Planning in accordance with Law N° 13 of 2000, regarding planning and the regulations and controls issued pursuant thereto.

In conclusion, the National Oil Corporation must, within two weeks of its date, complete its three-year development plan (2023, 2024, 2025) and submit it to the Council of Ministers for approval in order to issue a decision on financial arrangements to finance the development plan of the Corporation. The Government of National Unity must appoint an international advisory office to work in coordination with the Libyan Audit Bureau to supervise the implementation of the Corporation’s plan for 2022, and to review and supervise the Corporation’s development plan in modern and advanced ways. This is in addition to dealing with all budget sections of the National Oil Corporation and its subsidiaries on Chapter Three (development in the state’s general budget) as it is of a developmental nature. The National Oil Corporation shall implement bank transfers with the oil revenues at the Libyan Foreign Bank, provided that the previous mechanism regarding oil revenues and its re-establishment and deposit in the sovereign account with the Libyan Foreign Bank and from it automatically to the accounts of the Ministry of Finance with the Central Bank of Libya.