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Author: Amira Cherni

The Independent: Threats of Another Oil Shutdown if the National Oil Corporation Isn’t Relocated to Eastern Libya, with Concerns Over International Oversight of Libyan Oil

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The Independent Arabia reported on Saturday that the issue of oil has resurfaced in Libya. This follows the request made by the Speaker of the House of Representatives, Aguila Saleh, earlier this week during a parliamentary session. He called on the head of the National Oil Corporation, Farhat Bengdara, to clarify the factors preventing the relocation of the corporation’s headquarters from Tripoli to Benghazi, as per a 2013 decision issued by former Prime Minister Ali Zeidan.

Specter of Shutdowns:
The article noted that the Speaker’s request coincided with threats from the “Oil Crescent Movement” to shut down oil fields and ports if five oil companies—Waha, Zueitina, Harouge, Sarir, and Mabrouk—are not relocated to the Oil Crescent region. The group has given a two-week deadline to fulfill these demands or halt oil production.

According to the Independent, Libyans often use oil as leverage to pressure authorities for political, developmental, or social goals. The southern region, home to major oil ports like Sharara (Libya’s largest field with a daily capacity of 300,000 barrels) and El Feel, lacks basic services, despite its vital role in oil production.

Observers fear the possibility of international oversight over Libya’s oil and gas sector, especially if shutdowns resume. The National Oil Corporation reported losses exceeding $120 million due to previous closures by the end of last year.

A Political Lever:
Political analyst Wissam Al-Kabeer stated that since the 2011 revolution, Libya’s oil sector has been used as a political tool, beginning with the 2018 shutdowns under Ibrahim Jathran’s control of Sidra and Ras Lanuf fields, and continuing through subsequent closures, including the one linked to the Central Bank crisis in late 2024.

Al-Kabeer added that oil has been used for various purposes, such as disputes over oil revenues and Parliament’s repeated failures to approve budgets. It is also a bargaining chip for Eastern authorities seeking concessions from the Tripoli government in oil and other sovereign sectors.

Risk of Civil War:
Al-Kabeer warned that threats to shut down oil are not only aimed at domestic politics but also serve as leverage in international and regional negotiations over economic, military, and security issues. He emphasized that given Libya’s current political deadlock and growing security tensions, another oil shutdown could trigger a civil war, akin to the 2019 conflict.

He also pointed out that the threats coincide with the UN mission’s preparations to launch a new political process. This timing underscores the use of oil as a bargaining chip to secure advantages before the political roadmap takes shape.

International Interests:
Al-Kabeer highlighted that global powers like the U.S., Russia, and Britain prioritize oil revenue management and its distribution mechanism. These nations also use this issue to push for consensus on restructuring Libya’s political landscape, possibly leading to the formation of a unified government under Parliament’s significant influence.

Iraq Scenario:
The Independent cited fears from the head of the General Oil Union, Salem Al-Rumaih, over potential international oversight of Libya’s oil sector. He warned that escalating political and security divisions, along with international interference, could lead Libya into a “oil-for-food” scenario, similar to Iraq.

Al-Rumaih stressed that oil must be insulated from political disputes, as Libya’s economy relies solely on oil revenues. He cautioned that the U.S. and EU, as key members of the Joint Economic Commission monitoring Libyan oil flow, would not remain silent in the event of further shutdowns. They may impose a form of international oversight, especially if closures persist indefinitely.

The article also noted that the Joint Economic Commission, established during the Berlin II Conference on Libya in 2021, includes the U.S., EU, Egypt, and the UN mission. It proposed creating a supra-sovereign body named the Libyan Committee for Monitoring Oil and Gas Revenues to oversee oil revenue management and allocate spending priorities.

Argus Agency Reveals Libya’s Oil Exports for 2024

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Argus Agency reported today, Friday, that Libya’s crude oil exports decreased by only 2% last year, despite several months of politically driven blockades at ports and oil fields.

According to Argus tracking data, the country exported 973,000 barrels per day across 12 crude grades in 2024, slightly less than in 2023, when 989,000 barrels per day were loaded, marking the second-highest export year since the civil war in 2011.

The agency added that average exports exceeded one million barrels per day in six out of the 12 months of last year, reaching 1.15 million barrels per day in December, the highest monthly average since February 2021. The heightened activity throughout the year allowed Libya to boost its oil production to 1.4 million barrels per day in recent months, the highest level in over a decade. This increase helped offset the impact of earlier disruptions in loading operations in 2024, according to the agency.

Independent: Libya Retains Highest Foreign Currency Reserves to Avoid Economic Shocks – Here Are the Details

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The British newspaper Independent reported today that several African countries maintain significant foreign currency reserves to mitigate economic shocks, support imports, and maintain their financial credibility on the international stage.

The reserves of several countries at the end of 2024 reflect a highly positive outlook despite the tough global environment. The rise in the prices of basic commodities, especially crude oil, has had a positive impact on export revenues and the balance of payments in many African countries, according to the report.

The Independent stated that continuous financial flows have bolstered the continent’s reserve position, driven by new projects, support from development financial institutions, improved remittances from expatriates, and the influx of tourists and their remittances.

Libya Leads the Way

Two Arab countries maintained their positions at the top of the list, namely Libya and Algeria, while Egypt, Tunisia, and Morocco were also present among the top 10.

The newspaper went on to say that Libya ranked highest in Africa with large foreign currency reserves totaling $80.7 billion. Its gold reserves remained unchanged at 146.65 tons during the first quarter of 2024, compared to 146.65 tons in the fourth quarter of 2023. Libya’s average gold reserves from 2000 to 2024 were 131.36 tons.

The newspaper emphasized that despite political instability and the prevalence of internal conflicts, Libya has managed to maintain relatively high foreign currency reserves due to its extensive oil production and exports.

According to the Independent, the Central Bank of Libya has utilized these reserves to maintain balance, particularly during periods of volatility in global oil prices in 2024.

Africa Intelligence: New Lawsuit Targets Head of National Oil Corporation Over UAE Passport

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The French website Africa Intelligence reported that a new legal case is expected to be filed against Farhat Omar Bengdara, in addition to two previous cases. This case is based on a ruling by the Tripoli Court of Appeals, which determined in October that the head of the National Oil Corporation holds UAE citizenship.

According to the website, lawsuits against Farhat Omar Bengdara, head of the NOC, are increasing. Mohamed Aoun, the former Minister of Oil and Gas in the Tripoli government from 2021 to 2024, is preparing to file a lawsuit before the Tripoli Court of First Instance challenging the legitimacy of Bengdara’s appointment.

Bengdara was appointed head of the NOC in July 2022 by the Prime Minister of the Government of National Unity, Abdul Hamid Dbeibeh.

The former oil minister argues that this appointment is illegal due to Bengdara’s UAE citizenship. Aoun bases his argument on a prior ruling by the Tripoli Court of Appeals in October.

This legal challenge against Bengdara comes alongside a lawsuit filed by an NOC employee, Masoud Shreih, an advisor in the corporation’s International Marketing Department. Shreih, represented by the Libyan legal firm “Etqan,” challenged his transfer to the Arabian Gulf Oil Company (AGOCO), a subsidiary of the NOC in Benghazi, before the Tripoli Court of Appeals a year ago. The NOC, represented by the state’s Legal Affairs Department, claimed that the transfer resulted from internal relationship issues.

However, when the Tripoli Court of Appeals ruled in Shreih’s favor in October, it justified its decision by stating that Bengdara’s actions as head of the NOC could not be applied because his appointment was deemed unlawful.

The plaintiff’s lawyers presented documents to the court showing that the head of the NOC had registered a company in the UK named INTLBA Ltd using a UAE passport. According to the defense, this constitutes “a violation of Law No. 24 of 2010 (the Libyan Nationality Law), which stipulates that anyone who acquires foreign citizenship without adhering to the provisions of this law automatically loses their Libyan citizenship.”

Targeting the Prime Minister

Following the Tripoli Court of Appeals ruling, the High Council of State sent a letter on December 12 to the Ministry of Interior of the Government of National Unity, intelligence agencies, the Public Financial Investigation Authority, and the Audit Bureau. The letter called for a financial and administrative investigation into Farhat Bengdara.

For his part, Bengdara continues to deny the accusations and asserts that he retains the support of the Prime Minister. Since the Court of Appeals ruling, no political representative has contested his legitimacy as head of the NOC.

By targeting Bengdara, Mohamed Aoun effectively seeks to destabilize the Prime Minister, who is also implicated in this case. This lawsuit is part of Aoun’s broader battle against Abdul Hamid Dbeibeh, as Aoun aims to preserve his position at the Ministry of Oil.

Aoun also hopes to undermine the credibility of decisions made by Dbeibeh. The conflict between the two men erupted last year when Dbeibeh dismissed Aoun after the Administrative Oversight Authority launched an investigation against him “for public interest reasons.” Although the investigation yielded no results, Aoun was unable to regain his position, which is now held by Khalifa Abdel Sadek, according to the website.

Cancer Patients Victims of the Libyan Embassy Account Freeze in Cairo, as a Citizen Pleads for Help

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Libyan citizen Amin Bin Saud, the husband of a cancer patient receiving treatment in Egypt, has made a heartfelt appeal to House of Representatives Speaker Aguila Saleh, Prime Minister Abdulhamid Dbeibeh, and all Libyan officials to address the dire situation faced by Libyan patients undergoing treatment in Egypt.

According to reports, these patients, who placed their hopes in obtaining adequate treatment and healthcare, are in urgent need of ongoing care and full support from their government. The worsening condition of many of these patients, some of whom have tragically passed away due to the challenging circumstances they face, requires immediate intervention by the state. Many of these individuals are in critical need of specialized medical care and the continuation of their treatment plans.

Bin Saud emphasized that caring for Libyan patients abroad is not merely a humanitarian obligation but a national responsibility. It falls upon Libyan officials to ensure the provision of care and support for these citizens. He holds the relevant authorities accountable for the catastrophic conditions faced by Libyan patients in Egypt. Supporting citizens abroad is not just a matter of health and ethics; it is also an expression of love, solidarity, and a genuine reflection of national unity.

He stated, “We understand that times are tough, but we firmly believe that Libya, with its great people and leadership, is capable of providing the necessary support to those in need, especially during this critical period.”

Bin Saud also highlighted the financial burdens borne by patients and their families, including living expenses of approximately $150 per person for accommodations, along with food, transportation, and rent. These costs, coupled with delays in state payments, have forced many patients to incur unnecessary expenses. Some have even been compelled to return home without completing their treatment due to their inability to afford these costs. Providing psychological and financial support, he noted, must be a top priority for the state.

He expressed hope for enhanced cooperation between Libyan authorities and healthcare institutions in Egypt to ensure that all patients receive the best possible conditions for treatment and comfort.

Demanding a Budget of $750 Million: The National Oil Corporation Responds to the Audit Bureau’s Request to Halt the Fuel Barter System Starting in 2025

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Our source has exclusively obtained correspondence from the National Oil Corporation (NOC) addressed to the Chairman of the Libyan Audit Bureau. In this correspondence, the NOC responded to the Audit Bureau’s request to stop using the fuel barter system beginning in 2025, explaining the difficulties in ceasing this system.

The NOC stated that references to alleged legal violations related to the barter system may not accurately reflect reality. The resort to this system was driven by the need to ensure the continuous operation of critical facilities and avoid their collapse. This situation arose due to the failure of the Central Bank of Libya and the Ministry of Finance to release budgets on time without providing any legal justifications. The NOC had previously provided detailed explanations regarding the consequences of these delays through official correspondence. However, the disregard of these communications and the lack of necessary measures by the relevant authorities forced the NOC to propose temporary solutions to guarantee the continuity of essential facilities. All these temporary proposals were approved by the country’s executive authority (the Council of Ministers).

The NOC continued by stating that deeming these solutions illegal without considering the context that led to their adoption is an unfair assessment. Therefore, it emphasized the importance of adopting a broader and more comprehensive perspective in addressing all aspects of this critical issue.

Regarding the monthly financial requirements for fuel, the NOC stressed the need for a flexible budget for this category. As mentioned in all previous official correspondences, determining financial needs depends on the stability of oil and fuel prices, as well as the efficiency of operations at the Zawiya Refinery and the continuous flow of natural gas. This ensures reliance on liquid fuel is avoided. According to current indicators, monthly requirements are estimated at approximately $750 million, including gas supply costs of about $100 million per month, which are also settled in kind for Waha partners and Eni to cover the shortfall in gas production designated for power plants.

The NOC explained that current supply contracts aim to transition from the barter system to payment via letters of credit. Therefore, it is crucial to secure regular financial allocations to meet the country’s monthly fuel needs. Suppliers will be notified to activate the payment option through letters of credit. However, given the practical realities, it is difficult to stop the payment for fuel through the barter system from crude oil and product export invoices starting January 1, 2025. For example, the December supply operations are allocated under the same barter system, and this also applies to the needs for February.

The NOC proposed continuing with the barter system until the Central Bank of Libya achieves readiness and the commercial management prepares the appropriate credit mechanism acceptable to banks and suppliers. This would prevent any disruptions in securing local market fuel needs on schedule.

The NOC added that regarding the opening of a special bank account for fuel in coordination with the Central Bank of Libya, the bank governor has been addressed, and the account will be opened with all necessary arrangements to ensure the successful and smooth implementation of the new system. It emphasized that previous experiences have proven the Central Bank and Ministry of Finance lack the required flexibility in securing financial allocations on time, which leads to disruptions that halt critical facilities in the country.

The NOC also recommended reverting to the barter system if scheduled shipments or additional shipments are disrupted due to the shutdown of the Zawiya Refinery, fluctuating natural gas production, or force majeure events. The NOC suggested returning to letters of credit once the bank account is replenished. This flexibility is necessary to avoid interruptions in the supply of electricity generation stations, water desalination plants, strategic factories, and fuel distribution stations.

Atiya Al-Fitouri Offers Solutions to the Causes of the Dollar Exchange Rate Increase in the Black Market

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Professor of Economics at the University of Benghazi, Atiya Al-Fitouri, explained in a post on his personal page the problem of the increase in the dollar exchange rate in the foreign exchange black market, despite the opening of documentary credits for small traders with $500,000, and breaking down the amount into segments of $100,000 each time, and $4,000 for individuals, with an additional $4,000. Despite this, the exchange rate in the black market has not decreased.

Al-Fitouri continued by stating that this could be due to the relatively complicated procedures required by the Central Bank for each case of obtaining dollars, in addition to the lack of trust in the sustainability of these procedures. Moreover, there is a large volume of foreign labor in Libya, both legal and illegal, which is transferring part of its income abroad.

Al-Fitouri further clarified that what needs to be done is to ensure that live dollars are available in commercial banks, as was the case in 2010 and before, and to allow each Libyan citizen to buy up to $1,000 at a time, whether the currency is cash or transferred through Western Union or MoneyGram. Any commercial bank would provide $1,000 in cash or transfer the amount through one of the two other means. The Central Bank could regulate this over time, for example, once a month or every three months, or otherwise. This would reduce the price of the dollar in the black market, bringing it closer to the official rate. This approach would relieve the Central Bank of the burden of paying more foreign currency to the public, compared to what it currently pays: $4,000 plus an additional $4,000 per individual.

Al-Fitouri added that this continuity would help build trust in the Central Bank’s procedures, leading to the stability of the dinar’s value against the dollar in the black market. The demand in this market would then come only from foreign labor. However, all of this requires the presence of live dollars at the Central Bank, which would feed commercial banks according to demand, which would eventually stabilize if the Central Bank’s policy settles on this situation.

Al-Fitouri concluded his post by saying: “A final word on this matter is that currency speculation is present in economic literature, especially in the subject of international finance. We know that speculators speculate against weak or unstable currencies, and the Central Bank cannot fight, stop, or even limit this except through an effective monetary policy, in addition to the understanding of financial authorities about the importance of stabilizing the value of the national currency and taking the appropriate measures for that.”

Exclusive: Al-Harchaoui: For Libyan Funds to Be Repaid by France, a Judicial Decision is Required… Saif Gaddafi is Not a Judge

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Libyan affairs expert at the Royal United Services Institute, Jalal Al-Harchaoui, told our source on Sunday that regarding the issue of funding the 2007 French presidential election campaign, Sarkozy has not yet been convicted, as the trial only began two days ago.

Al-Harchaoui confirmed to our source that for the Libyan funds to be returned from France, as Saif al-Islam Gaddafi had claimed in a media appearance, the French authorities must comply with his request to return the election campaign funds. However, for this to be executed, a judicial decision is necessary, and Saif al-Islam Gaddafi is not a judge, according to his statement.

Libya’s Oil and Gold Reserves Entice Western Governments… Sarkozy Returns to Court Bearing “Gaddafi’s Legacy”

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The British newspaper The Independent published a report on Saturday shedding light on a meeting held in Tripoli in 2005. Officially, the meeting between Colonel Muammar Gaddafi and Nicolas Sarkozy—then France’s Minister of the Interior and preparing for his 2007 presidential bid—was to discuss irregular migration.

The newspaper reported that an agreement was allegedly reached, as evidenced by statements from seven senior former Libyan officials. These accounts referenced secret trips by Sarkozy’s campaign manager Claude Guéant, a close associate of Sarkozy, Brice Hortefeux, and notes from former Libyan Oil Minister Shukri Ghanem, whose body was found in the Danube River in 2012.

This agreement initially appeared as an “international rehabilitation” for Gaddafi. After being elected president, Sarkozy welcomed Gaddafi with great fanfare during a controversial visit to Paris—the first in three decades.

The deal also translated into major contracts and judicial assistance for Libyan intelligence chief Abdullah Senussi, who was sentenced to life in absentia in France for his role in the 1989 bombing of a French airliner that killed 170 people, including 54 French citizens.

The newspaper noted that about 20 individuals are involved in the trial, including two experienced negotiators in international parallel dealings: French-Algerian businessman Alexandre Djouhri and Franco-Lebanese Ziad Takieddine, who fled to Lebanon where he remains.

Investigators discovered three wire transfers totaling €6 million ($6.18 million) in one of Takieddine’s accounts from Libyan authorities, and he spoke of “suitcases” filled with cash handed to Claude Guéant containing “large bills.”

Investigations also revealed unexplained cash circulating within Sarkozy’s campaign headquarters. Eric Woerth, then Minister of Finance, described them as “anonymous donations” amounting to only a few thousand euros.

Guéant’s lawyer, Philippe Bouchez El-Ghozi, stated that his client “will appear in court,” emphasizing that after more than a decade of investigations, no crimes have been proven. He decried the accusations as a “series of allegations, hypotheses, and estimates.”

A Case of Retaliation?

Sarkozy denies all accusations, describing the charges as mere “retaliation” from Libyans due to his support for the Arab Spring revolution that toppled Gaddafi. His lawyers deny any illegal financing, asserting that no trace of such funds was found in his campaign accounts.

Hassane Abidi, director of the Geneva-based Center for Arab and Mediterranean Studies, observed that Libya was “a lawless state” when Sarkozy assumed office in 2007.

The Independent added that French diplomat Patrick Haimzadeh, who served in Tripoli between 2001 and 2004 and authored In the Heart of Gaddafi’s Libya, said it was widely known that Gaddafi’s regime financed foreign leaders or political figures—often through cash-filled suitcases. He emphasized it is up to French courts to determine if Sarkozy was one of the beneficiaries.

The newspaper highlighted that the Franco-Libyan dialogue was revived before Sarkozy’s 2007 election, starting in 2001 under then-President Jacques Chirac after Gaddafi strongly condemned the September 11 attacks in the United States.

Although Libyan attitudes shifted, lingering French reservations over unresolved disputes, UN sanctions, and other restrictions persisted. According to Haimzadeh, Paris explored “cooperation channels” limited to non-strategic areas like culture and tourism.

In 2005, a security attaché linked to France’s Interior Ministry joined its embassy in Tripoli, creating a direct line between the ministry and Libyan security officials. Sarkozy’s 2007 election marked a turning point, establishing new areas for cooperation and potential lucrative contracts, particularly in the military sector.

Gaddafi’s state visit to France in December 2007 was expected to result in contracts worth billions of euros. However, no deals were signed, straining relations. Abidi explained this tension stemmed from France viewing Libya as an untapped country requiring substantial development, particularly its oil fields. The country also boasts significant reserves of gold and silver, which entice Western governments.

In March 2011, Gaddafi’s son, Saif al-Islam, politically bombarded Sarkozy, claiming he must return the funds Libya provided to finance his campaign.

Analyst Jalel Harchaoui noted that Libyan funding for Sarkozy’s campaign was “entirely plausible,” given the long-standing practice of African dictators purchasing influence in France. He specifically cited Gabonese President Omar Bongo’s contributions to political campaigns, including Chirac’s in 1981—a claim Chirac later denied.

However, Harchaoui dismissed the notion that the 2011 NATO intervention in Libya was driven solely by Sarkozy’s desire to bury the campaign funding controversy, calling it “absurd,” according to the newspaper.

Exclusive: Referring to Adulterated Gasoline… Shriha States That the National Oil Corporation Paid $42 Million of Libyans’ Resources to a Company with a Notorious History of Corruption

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Engineer Masoud Shriha, the complainant against the Chairman of the National Oil Corporation (NOC), Farhat Bengdara, stated in an exclusive statement to our source hat the NOC paid $42 million of Libyan public funds to settle the adulterated gasoline case. He added that the company “Lukoil” has a well-documented history of corruption, as confirmed by multiple reports, including those from the International Center for Investigative Reporting.

Shriha further mentioned that the Nigerian National Petroleum Corporation accused Lukoil on February 19, 2022, of supplying Nigeria with shipments of adulterated gasoline. The Nigerian institution claimed that Lukoil had delivered fuel containing methanol levels below the Nigerian standard specifications.

He continued by highlighting accusations from Romania’s Anti-Money Laundering, Fraud, and Bribery Unit against Lukoil. The accusations involved bribery, fraud, and illicit activities linked to Lukoil’s refinery in Romania, which allegedly sold non-compliant oil shipments to Hungary. It was confirmed that these shipments contained excessively high chlorine levels.

Shriha added that this is not the first case involving Lukoil and likely won’t be the last. He emphasized that Libya is no exception to dealings with a company focused solely on profit. Despite ongoing investigations, he suggested that the Attorney General could have formed a committee to coordinate with the Swiss prosecutor, as Switzerland is where the company is registered. This could have included freezing payments due to Lukoil until international investigations were completed, as well as launching a local inquiry and issuing a red notice against the individual “Imad Bin Rajab.”

Shriha also pointed out that Lukoil is not the only company with a history of corruption and adulterated gasoline. He referred to the Lebanese company “BB Energy,” which was accused of supplying adulterated gasoline to Lebanon, leading to the imprisonment of 15 individuals. He expressed concern over replacing these corrupt companies with shadowy Emirati firms, whose operations are obscure and untraceable, raising doubts about the integrity of fuel imports. He also noted promises made by the NOC during meetings in London to bring Lukoil and BB Energy back into the Libyan market as suppliers, questioning the motives behind these decisions.

Concluding his statement, Shriha questioned the enthusiasm of Acting Chairman Masoud Al-Maghrabi in urging the Audit Bureau to approve payments due to Lukoil. He asked whether, following investigations and a final court ruling, Al-Maghrabi would show the same zeal in apologizing to citizens and compensating for the damage caused to hundreds of vehicles.

Exclusive: Al-Twibi Files Complaint Against Parliament Speaker and Central Bank Governor Over Failure to Implement Tax Cancellation Rulings

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Lawyer Thuraya Al-Twibi revealed to our source that she has filed a complaint against the Governor of the Central Bank of Libya and the Speaker of the House of Representatives for their refusal to implement two rulings. These rulings mandate the suspension of the decision and the cancellation of the imposition of the foreign currency tax, according to her statement.

She stated: “Article 234 stipulates the dismissal and imprisonment of any employee who refuses to execute court rulings. The crime defined under Article 234 of the Penal Code is evident, and the situation constitutes a clear violation, which does not require immunity to be lifted, if immunity exists.”

She added: “We call on the Attorney General to swiftly take legal action, as the crime under Article 234 of the Penal Code continues despite the issuance of the rulings. This is to leverage the clear violation and set an example for officials to respect and execute court decisions.”

Exclusive: With the Continuation of the Imposed Tax, the Central Bank Issues Regulations for Resuming Foreign Exchange Sales Using the Same Previous Mechanism

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Our source has obtained a correspondence from the Director of the Banking Supervision and Control Department at the Central Bank of Libya to the general managers of banks. The correspondence concerns the addition and amendment of certain regulations governing foreign exchange transactions as outlined in the referenced circular. These regulations address the purchase of foreign exchange for various purposes and the opening of letters of credit. Payment for documents exchanged with the correspondent bank is to be made within 15 days of receiving the documents. This condition must be included in the telegram initiating the letter of credit.

Additionally, a certificate of goods export from the country of the beneficiary must be included as part of the exchanged documents for letters of credit. This applies specifically to land-shipped goods of Tunisian origin through Ras Ajdir (customs declaration document), Algerian-origin goods through the Dehiba border crossing, and Egyptian-origin goods through the Emsaad–Saloum crossing (standardized customs declaration form). This condition is also to be included in the telegram initiating the letter of credit.

Moreover, regulations concerning electronic cards for companies, small traders, and artisans stipulate a maximum annual loading limit of $500,000 or its equivalent in other foreign currencies. This amount is to be loaded in installments, with no single installment exceeding $100,000. Subsequent installments may only be loaded after suppliers provide customs declarations verifying the import of the required goods and equipment, along with evidence of service completion by the entities benefiting from the amounts loaded onto the issued card. Compliance with any instructions from the Central Bank or other relevant authorities regarding suspended banking transactions for specific entities must also be ensured.

For direct external transfers for industrial companies, the maximum amount is set at 4% of the value of the letters of credit executed by the company during the previous year at the Central Bank of Libya, up to a limit of $2 million. These transfers must be made in installments and require prior approval from the Banking Supervision and Control Department.

The circular emphasized the implementation of the aforementioned regulations while maintaining adherence to previously issued controls in this regard.

Furthermore, the Central Bank clarified the continuation of the decision by the Speaker of the Libyan House of Representatives, No. 86 of 2024, issued on November 20, 2024, which imposes a levy on the official exchange rate until contrary instructions are issued by the Central Bank.

Al-Zantouti: “Stop the Nonsense, End Fuel Subsidies Immediately, and Demand an End to Smuggling Now”

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Written by financial expert Khaled Al-Zantouti: “These days, opinions, articles, discussions, and decisions about fuel subsidies, their drawbacks, and ways to address them are abundant. In this context, I say: Ladies and gentlemen, I still insist that our primary problem is smuggling. While I am fully aware that smuggling is a result of subsidies, we cannot simply end subsidies with the stroke of a pen, especially without establishing a comprehensive social safety net that ensures fairness and guarantees a minimum standard of living for all citizens.

Yes, I advocate for fuel subsidy reform, but it must be done objectively, justly, and with deliberate, implementable decisions. To demand the immediate removal of subsidies or their conversion into direct cash assistance (when the average citizen is struggling to even receive their salary or obtain the cash necessary to buy fuel) is sheer madness.

According to some statistics, the average Libyan consumes about 2,000 liters per person annually, which is approximately five times the global average. This is truly alarming.

However, there are logical reasons behind this, such as the lack of public transportation infrastructure and the heavy reliance on private vehicles. But the main reason is smuggling. Based on some estimates, at least 40% of the fuel is smuggled, costing billions of dollars annually. Imagine this: according to published investigative reports, smuggled Libyan fuel is sold at gas stations in Italy, Malta, and Africa.

Imagine, ladies and gentlemen, that those European countries, whose criminal groups (mafias) collaborate with local criminal groups to smuggle Libyan fuel, do nothing to stop this illegal smuggling. Yet, their naval fleets dominate the Mediterranean to prevent human trafficking while failing to stop massive tankers smuggling Libyan fuel to Europe. It’s a strange paradox indeed.

Fuel smuggling from Libya is not done in small quantities or tanker trucks but through fleets of ships on the sea and caravans of vehicles and tractors on land routes, brazenly and openly.

Wouldn’t it make more sense to fight smuggling first, even if fuel subsidies for Libyans remain as they are (until we are ready to address the issue)? After all, it is Libyans’ oil, from their land, and it is their right.

Ladies and gentlemen, let us first eradicate smuggling. This is the duty of the state. Let us not forget that we deploy drones to fight one another—are we incapable of protecting our national borders if we truly want to?

In summary, there is no doubt that I support organizing fuel subsidies with the goal of rationalizing consumption as a primary objective. However, this must occur under a fair and well-studied social safety net. This cannot be achieved immediately but rather gradually and thoughtfully, with an understanding of its impact on all economic and living variables affecting the lives of citizens who own the land and its oil.

Most importantly, we must first put an end to smuggling, regardless of who is behind it. Smuggling is a complete economic crime with devastating negative consequences for the national economy. Let Libya’s oil remain for Libyans—it is their land and their oil. Once smuggling is stopped, we can address the issue of fuel subsidies in a fair and well-studied manner.”

Reuters: Spanish company Repsol resumes oil exploration in Libya after 10-year interruption

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Reuters agency reported today, Wednesday, that Spanish company Repsol has resumed oil exploration in Libya after a ten-year stoppage.

According to Reuters, the National Oil Corporation said that Repsol has begun drilling a well in the Murzuq Basin, about 12 kilometers from Sharara field, Libya’s largest oil field, according to the agency.

Exclusive: Central Bank Directs Banks to Open the Foreign Exchange System on January 5 – Here’s What Was Requested

Written by Amira Cherni on . Posted in News. No Comments on Exclusive: Central Bank Directs Banks to Open the Foreign Exchange System on January 5 – Here’s What Was Requested

Our source has exclusively obtained a circular from the Central Bank of Libya addressed to commercial banks, instructing them to begin accepting foreign exchange coverage requests through its system starting January 5 for various purposes.

The directive emphasized the need for banks to prepare their systems and get ready to accept requests from clients, including individuals, companies, and entities, for all purposes.