NOC: Libya loses millions per month because of Presidency Council

NOC: Libya loses millions per month because of Presidency Council

May 10, 2017 - 22:22
Posted in:
Written By: AbdullahBenIbrahim

Libya is losing $250 million per month due to a commercial dispute between the National Oil Corporation (NOC) and one of its foreign partners, the NOC reported on Wednesday.

In a statement on its official website, the NOC clarified that the dispute with Germany's Wintershall was resulted by Presidency Council resolution 270, which stripped the NOC of its powers.

The dispute has led to the shutdown of over 160,000 bpd of production, causing a monthly loss of $250 million, according to the National Oil Corporation.

Libya’s oil production has exceeded 800,000 bpd for the first time since 2014.

“We would be producing almost 1 million bpd if it were not for Wintershall’s refusal to implement terms it agreed to in 2010. Resolution 270 was written to allow Wintershall to evade its obligations.” NOC Chairman Mustafa Sanallah said.

According to the resolution, issued late in March, the Presidency Council will be the supervisor of investments into the oil resources in Libya as well as of developing it and proposing the necessary legislations in this regard, not to mention approving the projects and plans that aim at boosting the oil production in the country.

“This is a very serious matter, I have asked the Presidency Council to withdraw resolution 270 for this reason and because it oversteps their authority.” Sanalla added.

The NOC said Libyan oil production averaged 564,000 bpd in April, down from 641,000 bpd in March, 688,000 bpd in February, and 678,000 bpd in January.