Written by oil expert Othman Al-Hdhiri
Someone recently wrote an article as if he were advising the management of the National Oil Corporation (NOC), despite the fact that he has served as a strategic advisor there for several years, suggesting that the Corporation should publish its data periodically. He argued that this would strengthen the Corporation’s position as the technical authority responsible for managing production and marketing operations and would provide the state and the public with an information base that helps them better understand what is happening within the sector.
We also ask:
Does the National Oil Corporation’s data, for several years, reflect full disclosure and transparency in its various operations? Does it actually possess a comprehensive information database for this purpose?
What we all know is that the figures differ significantly between the Corporation, the Ministry of Finance, and the Central Bank of Libya, and most suspicions regarding this discrepancy are directed toward the National Oil Corporation itself.
We further state that the periodic publication of data is indeed one of the important factors that enhances the Corporation’s position as a responsible technical reference managing production and marketing operations. Such data provides the state and the public with a reliable information base that helps them understand what is taking place within the oil sector—including the Corporation and its affiliated companies—with greater accuracy.
However, the question remains today and tomorrow:
Does the National Oil Corporation currently enjoy complete disclosure and transparency in its data? Does it possess an integrated information system capable of supporting this?
What we all observe is the existence of major discrepancies in the announced figures for production and revenues between the Corporation on one hand, and the Ministry of Finance and the Central Bank on the other. This raises numerous questions regarding the accuracy of the data issued by the Corporation and the professionalism of those managing its technical and financial departments.
Who is monitoring this situation, especially if the Corporation’s management is weak, the Ministry has limited authority, and responsibilities continue to overlap despite the clarity of oil laws and legislation?
These are legitimate questions, but they are certainly not questions that many wish to hear. Furthermore, regulatory bodies have so far failed—and may continue to fail—to access these hidden areas and investigate uncontrolled spending due to various factors that everyone is aware of.
What I want to say is:
“The management of the oil sector is incapable, lacks professionalism, and suffers from a shortage of experience and competence. The future of the sector remains uncertain.”
