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Libya Halts New Oil Deals Amid Transparency Concerns and LNG Tanker Crisis

Libya's Presidential Council has ordered a halt to all new deals concerning developed oil fields, instructing the National Oil Corporation chairman accordingly. The move aims to protect the national economy and ensure optimal returns from oil resources, following Prime Minister Dbeibah's earlier suspension of a controversial agreement. Concurrently, a damaged Russian LNG tanker is adrift and out of control in severe weather between Libya and Malta after a failed towing operation. These events highlight ongoing instability in Libya's crucial energy sector.

Key Points: Libya Stops New Oil Deals, Cites Public Concerns

  • New oil field deals halted
  • Transparency and public concerns cited
  • PM suspended prior controversial agreement
  • Damaged Russian LNG tanker adrift
2 min read

Libya orders halt to new oil deals, citing public concerns

Libya's Presidential Council halts new oil field deals to protect the economy. PM Dbeibah suspends a controversial agreement as a damaged LNG tanker drifts.

"strengthen protection of Libya's national economy and secure optimal returns from its strategic oil resources - Presidential Council reports"

Tripoli, April 5

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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Reader Comments

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Priya S
The part about the drifting LNG tanker is terrifying! 40-knot winds and 5-meter waves... that's a major environmental disaster waiting to happen in the Mediterranean. The focus on oil deals is important, but this immediate crisis needs global attention and assistance. 🌊
A
Arjun K
Good step. When a nation's main revenue source is controlled by a few through shady contracts, the public suffers. Libya needs to stabilize its oil sector to fund development. Political instability has cost them dearly for years. Let's hope this audit leads to better, fairer agreements.
S
Sarah B
While the intent to protect national interests is commendable, a complete halt on *all* new deals might scare away legitimate foreign investment needed for technical expertise. A balanced approach with clear, transparent rules would be more effective than a blanket ban, in my opinion.
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Vikram M
"Citing public concerns" – that's the key phrase here. Governments everywhere should listen to their citizens more, especially on matters of national wealth. The Prime Minister suspending the earlier deal shows public pressure works. A lesson for many countries, including ours sometimes.
K
Karthik V
The article shows two sides of the same coin: trying to secure oil resources (long-term economic planning) and failing to secure a gas tanker (immediate operational crisis). Libya's authorities have their hands full. Stability in the region is important for global oil prices, which affect us all.

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