Key Libyan institutions and representatives have agreed a set of principles aimed at reinforcing existing legal protections for the National Oil Corporation (NOC).
Representatives of Libya’s National Oil Corporation, the Governor of the Central Bank of Libya (CBL), tribal and municipal representatives, the United Nations, the International Monetary Fund (IMF), major international oil companies, diplomats from the UK, the US, Russia, the EU, Italy, Spain and specialist advisors agreed the principles at an NOC-convened consultation at St George’s House, Windsor Castle.
The consultation discussed a range of actions to protect the country’s economic foundations during Libya’s political transition, including the legal, financial, judicial and operational principles recommended to maximise and protect sustainable oil production.
The draft Statement of Principles will be forwarded by NOC to the broad-based conference on Libya’s political transition to be convened by the United Nations Secretary General’s Special Representative Ghassan Salamé.
“I am grateful to all the attendees who joined us at this unique gathering for open and frank discussions on how Libya can overcome persistent security and governance problems in its oil sector. We will work together as Libyan technocratic institutions to put into action each one of these principles, and to ensure the whole country realizes the benefits,” said Mustafa Sanalla.
Protecting Libya’s Oil, Windsor Castle, 10-11 October
Libya's political stability and the welfare of its people requires the unhindered collection of petroleum revenues. This task falls to the NOC under Law 24 of 1970 and the 1979 NOC Reorganization Resolution.
The following principles are proposed as a means of guiding the NOC through the current transitional period pending the full functioning of the Libyan Government and House of Representatives as foreseen in the UN-supported Libyan Political Agreement.
- The exploitation of Libya's oil and gas resources shall be for the benefit of all Libyan people, regardless of location.
- NOC and its subsidiaries shall have a monopoly on the exploration, production, transport and export of oil and gas.
- All NOC revenues shall be sent to the Central Bank of Libya in a transparent process with details reported to the Libyan people. NOC and its subsidiaries will be adequately funded in an equally transparent process by the Government of Libya in a timely manner to ensure the optimal level of production and exports.
- Attempts to blockade oil, misappropriate oil and equipment, disrupt or prevent the production or transport of petroleum products are condemned by all parties, and shall be prosecuted to the full extent permitted by Libyan and international law.
- No concessions or payments will be made to blockaders or disruptors.
- The security and safety of Libya’s oil will be maintained through implementing security measures consistent with international professional standards as accredited by the NOC.
- New deals with IOCs to attract investment in the oil and gas sector will be agreed in a transparent manner and in accordance with Libyan law.
- Appointments to the Board of the NOC and its subsidiaries should be based on an open and transparent process, focusing on professionalism, competence and experience in relevant business roles.