NOC warns Oil Market against Illegal Contracts

By John Lee.

The National Oil Corporation (NOC) has reasserted that it is the only body authorised by the United Nations to export crude oil and oil products from Libya.

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

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

It 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 unauthorised individuals.

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.

(Source: National Oil Corporation)

No comments yet.

Leave a Reply