Libyan NOC warns oil market against illegal contracts

Libyan NOC warns oil market against illegal contracts

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Libyan National Oil Corporation (NOC) has reasserted that it is the only body authorized by United Nations resolutions to export crude oil and oil products from Libya, said the message on NOC’s website.

NOC confirmed that term contracts covering the entire production for 2017 for all Libyan crude grades have already been entered with 16 international oil companies.

“Only these companies are legally contracted to buy Libyan crude oil and to charter shipping tankers from Libyan ports for 2017. The companies are the following: ENI, Total, OMV, Repsol, Rosneft, LukOil, Cepsa, Saras, API, Glencore, Socar, Unipec, Vitol, Gunvor, Petraco, and BB Energy,” said the message.

NOC identified a group of individuals abusing the current status of political division in Libya by entering into illegal contracts with unknown or unqualified companies.

NOC said these individuals, and others associated with them, have offered Libyan crude oil for sale at huge discounts below the Official Selling Price (OSP). If implemented, the losses to the state of Libya of these contracts would be hundreds of millions of dollars in lost revenue.

NOC warned the maritime market and crude oil market that these contracts are illegal and that entering into them may lead to serious legal consequences and financial losses. NOC does not accept responsibly or liability whatsoever for any loss or damage incurred as the result of entering into contracts with unauthorized individuals, said the company.

NOC also confirmed that all crude oil exports are paid by documentary letters of credit, and at the Official Selling Price (OSP) without any discount.

Earlier, NOC chairman Mustafa Sanalla.said that Libya plans to bring its oil production to 1.1 million barrels per day by August.

“Our production today is 700,000 barrels per day day and we work hard in order to reach 800,000 barrels per day before the end of April. We will reach 1.1 million barrels per day next August,” added Sanalla.

Alongside with Iran and Nigeria, Libya was also exempted from OPEC oil output cut deal reached last year in Vienna.

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