Libyan National Oil Corporation reports record-breaking September oil production, while Minister calls for caution amidst sovereign asset resolution concerns.
The National Oil Corporation (NOC) has reported robust oil production numbers for September, with a total output of 35,871,855 barrels. The recent statistics released on the NOC’s official Facebook page also revealed significant quantities of oil products (513,428 tons), petrochemical products (41,151 tons), and condensates (197,730 tons) during the same period. Additionally, natural gas production reached a substantial 1,044,320,321 cubic meters.
In light of these achievements, Minister of Oil and Gas, Mohammed Oun, has issued a stern reminder to adhere to House of Representatives’ Resolution No. 15 of 2023. The resolution calls for an immediate halt to all new procedures, contracts, or amendments related to sovereign assets, including oil, gas, and gold.
Minister Oun, in a formal communication dated October 16, addressed to the Chairman of the National Oil Corporation and the General Company for Gas Transmission and Distribution, emphasized the importance of full compliance with the decision as published in the Official Gazette. The resolution stipulates that any actions or commitments that contravene this directive will be considered null and void.
This call for vigilance follows concerns raised by eight industry experts regarding the National Oil Corporation’s ongoing negotiations. Under the oversight of the High Council of Energy, the NOC is in discussions with the Emirati consortium ADNOC, French oil giant Total, and Italian oil company Eni for the development of the “MN 7” field in Hamada Al Hamra.
The experts argue against removing the field from the purview of the Arabian Gulf Oil Company, citing potential risks associated with engaging companies lacking the requisite experience and capabilities. They also express concerns about transparency in the negotiation process, which could undermine fair competition and hinder the attainment of the most favorable terms and pricing.
Highlighting the long-known and confirmed reserves of the MN 7 field, the experts question its absence from prioritized development plans. They assert that the Arabian Gulf Oil Company is well-equipped to oversee its development, having already devised a comprehensive plan.
Furthermore, the field’s proximity to existing oil sector infrastructure makes it a cost-effective choice for development. The experts contend that the National Oil Corporation possesses the financial capacity to finance this endeavor and recommend engaging in dialogues with the government to secure the requisite funding.