- Country holds African continent’s largest crude oil reserves
- Rival eastern and western factions sign peace deal Thursday
The National Oil Corp. based in Tripoli is the only authorized supplier of Libyan crude, and no other company has the right to help sell the North African country’s oil, Chairman Mustafa Sanalla said.
“Exports by any entity other than NOC at its legal address in Tripoli have been outlawed by a series of UN Security Council resolutions and statements,” Sanalla said in an e-mailed statement. “All serious oil market participants are aware of this.”
Libya has two administrations, one in the west and an internationally recognized government in the east. The NOC in Tripoli is recognized by traders such as Glencore Plc and Vitol Group as the official marketer of Libyan oil. The eastern government has set up a separate NOC administration, led by Nagi Elmagrabi, which represents Libya in matters relating to oil including OPEC. Elmagrabi said on Dec. 18 that six companies including Netoil SA will sell crude from the country’s Mesla and Sarir oil fields.
“Netoil has no right to offer any oil from Libya,” Sanalla said. “NOC has already allocated under term contract all Mesla and Sarir crude oil exports for 2016. Loadings of Mesla/Sarir have continued without interruption.”
Rival Libyan factions from the Tripoli-based General National Congress in the west and the House of Representatives in the eastern city of Tobruk signed a peace deal on Thursday after a year in which opposing groups, each with its own legislature and armed allies, tussled over oil and power. The strife has caused output from the country with Africa’s largest oil reserves to slump almost 80 percent since Muammar Qaddafi was toppled in 2011. Libya pumped 375,000 barrels a day in November, according to data compiled by Bloomberg.