Oil Price website reported today, Thursday, that after the overthrow of the Libyan leader Muammar Gaddafi, the security and financial risks for international oil companies operating in Libya increased significantly. Regardless of the dismantled government institutions and the ongoing civil war, the imminent threat of force continues to be present at the country’s main oil and gas institution.
The website pointed out that on January 7, the National Oil Corporation declared a state of force majeure at Sharara oil field after its closure, along with the Al-Feel field. This followed large protests due to the rise in local fuel prices and the precarious state of the country’s economy.
The site continued to state that due to the significant economic and political risks associated with obtaining the largest possible share of Libyan oil money, no agreement has been reached that satisfies the conflicting parties since then. Several attempts have been made to effectively direct oil funds to one side or another through a series of political maneuvers, including the management of the National Oil Corporation.
According to the oil website, in July 2022, the Prime Minister of the Government of National Unity at that time, Abdul Hamid Dbeibeh, replaced Mustafa Sanalla, who is widely respected as the chairman of the board of the National Oil Corporation with Bengdara who was a longtime colleague and friend of Dbeiebh. He warned against tampering with the National Oil Corporation or its oil revenues and managed contracts.
The site added that Bengdara held a special press conference at the main headquarters of the National Oil Corporation during which he gained the support of two major companies affiliated with the National Oil Corporation: Waha Oil Company and Arabian Gulf Oil Company, before Waha later withdrew its support.
However, even the minimum of normal life in the oil sector can allow Libya to achieve its oil goals, as there has been progress in the country’s gas sector that can be replicated.
It is worth mentioning that last year, the Italian oil and gas giant Eni signed an agreement with the National Oil Corporation to invest around $8 billion to produce about 850 million cubic feet per day from two offshore gas fields in the Mediterranean Sea.”