The Maghreb Times | 17.05.2017
German oil firm accused of withholding $900m from Libya
Libya’s National Oil Corporation chief also claims Wintershall colluded with unlawful efforts by Libyan government to take over sale of oil contracts
A German oil producer has been accused by the head of Libya’s National Oil Corporation of withholding more than $900m (£697m) from the Libyan state and colluding with unlawful efforts by Libya’s UN-backed government to take over the sale of the country’s vastly profitable oil contracts. The power struggle between the NOC and Wintershall – which denied that it owed any money and said it had always met its obligations to the state – has long-term implications for global oil prices and the Libyan economy, since more than 80% of Libyan state revenues derive from oil. Despite Libya’s political crisis, oil production has been gradually increasing of late, reaching 800,000 barrels per day. The NOC is seen as one of the few bipartisan Libyan institutions capable of keeping out of the political infighting that has dogged the country since Muammar Gaddafi fell in 2011. Libya was producing 1.6m barrels per day before the uprising, and the NOC has said output in 2017 could reach between 1.1m and 1.2m barrels per day if political obstacles are removed.
The NOC argued that the battle with Wintershall, and the support the company has enjoyed from the UN-backed government, was vital to its ability to keep control of decisions on oil contracts away from politicians, and ensure that the maximum amount of revenue reaches the state coffers.