Libya orders halt to new oil deals, citing public concerns

Posted on by Vividh Bharathi

Tripoli, April 5 (IANS) The head of Libya’s Presidential Council, Mohamed Al-Menfi, has instructed that no new deals be made concerning already developed oil fields in the country, according to a report.

The instruction to Masoud Suleiman, chairman of the National Oil Corporation (NOC), confirmed Saturday (Local time) by the Presidential Council’s media office, prohibits all forms of agreements in this regard, including contractual arrangements, reports Xinhua news agency, quoting Al-Ahrar TV.

Menfi also requested immediate reports to the Council on the legal, technical, and economic procedures and backgrounds of any previous deals.

The move is intended to strengthen protection of Libya’s national economy and secure optimal returns from its strategic oil resources, said reports.

This development followed a previous decision by Prime Minister Abdul Hamid Dbeibah to suspend a controversial oil development agreement, reportedly with the Arabian Gulf Oil Company, citing mounting concerns over transparency and public backlash.

Oil and gas exports are Libya’s main source of revenue, but production has been repeatedly disrupted in recent years due to conflict or political instability.

Meanwhile, earlier on Thursday, Libya’s Ports and Maritime Transport Authority announced that an operation to tow a damaged Russian liquefied natural gas (LNG) tanker had failed.

In a statement, the authority said the tanker is now “completely adrift and out of control at sea due to severe weather conditions caused by a deep depression, with winds reaching 40 knots and waves up to 5 meters.”

The statement added: “We inform all ships, maritime units, and relevant authorities that the towing operation failed at 4:00 a.m. on April 2. The tanker is now out of control, and the tugboat is unable to return and reconnect under these dangerous weather conditions.”

The 277-meter-long tanker, named “Arctic Metagas,” was carrying an estimated 62,000 metric tonnes of LNG when it went down in waters between Libya and Malta on March 3, according to a navigational circular reported by the Libyan News Agency.

–IANS

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