No Result
View All Result
Friday, July 4, 2025
23 °c
Tripoli
24 ° Sat
24 ° Sun
  • Advertising
  • Contact
LibyaHerald
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

NOC to sweeten deals with foreign partners?

byNigel Ash
December 12, 2012
Reading Time: 2 mins read
A A
Revamped oil deals . . .[restrict]to get the nod?

Tripoli, 12 December:

With his signalling of a new licensing round, oil minister, Abdelbari Al-Arusi has seemed to suggest Libya is considering a review of existing much-criticised January 2005 oil and gas exploration and production contracts, and offering more favourable terms to the National Oil Company’s current overseas partners.

In a series of whistle-stop oil field visits, which aides said demonstrated the new minister’s hands-on style, Arusi also admitted that it was not certain that the new licensing round would actually take place during the short life-time of the present government.

“It could happen,” he told Reuters, “but I’m not sure. It depends on the situation in Libya”. The priority he said was to maintain production levels which have recovered far more rapidly than predicted, to between 1.5 and 1.6 million barrels a day.

Setting up a new licence round is a complex and time-consuming procedure. Moreover, from what Arusi said, it seems clear the new round will not be launched until the last Exploration and Production Sharing Agreements have been reviewed.

RELATED POSTS

Zawia Oil Refining Company prepares to establish 100-million litre industrial oils plant in Benghazi‎

Aldabaiba forms technical committee to examine controversial NC7 Hamada oil deal – must report by 30 January

“We want to come  up with the right solution for new negotiations in the future.” he said. “This EPSA IV [the last round] will be reviewed for the interest of the Libyans and for our partners. A lot of companies have complained about this EPSA IV; we don’t like people to lose, because this is a win-win business.”

An international oil analyst who follows Libya closely told Libya Herald: “It is already obvious that terms will have to be improved before new EPSAs are signed. If the review finds that international partners had no incentive to invest under the last round of EPSAs, which was indeed the case, then will NOC be prepared to make changes to existing contracts ? Is it preparing to make a major concession?”

UK lawyer firm Clyde & Co, which has just opened an office in Tripoli, has noted that the NOC’s average 88 percent production share is one of the highest in the world. The firm has pointed out that the EPSA IV licensing round was relatively unusual, in that it included  bids for the share of production NOC’s would-be partners were prepared to give NOC,  and also the size of the signature bonus. Normally, said Clyde & Co, the production share is negotiated or set out in a model contract.

Further demerits to the last licensing round included the fact that the contracts conveyed no ownership rights to NOC’s partners. It also required the partners to finance and undertake exploration at their own risk. Only in the development and operation of a commercial discovery, said Clyde, did NOC contribute.

[/restrict]

Tags: featuredLibyaoil

Related Posts

CBL receives results from meetings with international banks
Business

A 247,000-bpd oil production increase would achieve US$ 6 billion annually to enhance ability to meet FX demand, maintain strength of LD and achieve economic balance: CBL ‎

July 2, 2025
Libya Herald exclusive: Responding to the prime minister’s call yesterday to the private sector and banks to do more, leading businessman Husni Bey responds
Business

Op-Ed: Reputational Damage Is Worse Than Losing Money

July 2, 2025
Benghazi port receives 398 containers of mixed goods, 25,000 tons of wheat, 28,500 tons of barley and 6,000 tons of cement
Business

All imports into Libya must be paid for through official bank transactions

July 2, 2025
World Bank holds off on Tunisian $50m power plant fund; implications for Libya
Business

Libya’s economy showed recovery in 2024, remained resilient despite reliance on hydrocarbons and ongoing political and security instability: World Bank

July 1, 2025
CBL receives results from meetings with international banks
Business

CBL demands imports are conducted through official banking instruments and the elimination of the FX black market

July 1, 2025
Harouge Oil reaches record 45,000 bpd production – to increase it by 25,000 bpd
Business

Harouge Oil Operations Company replaces Al-Ghani field pipeline

July 1, 2025
Next Post

Reconciliation conference in Tripoli

Youth employment in Libya: a structural solution is needed (part 1)

Youth employment in Libya: a structural solution is needed (part 1)

ADVERTISEMENT

Top Stories

  • CBL goes public at last about the counterfeit LD 50 notes – notes to be withdrawn until end of August

    CBL reveals discovery of LD 3.5 billion in counterfeit 50-dinar notes printed in Russia – PM calls on Attorney General to open investigation

    0 shares
    Share 0 Tweet 0
  • Libyan Italian Forum concludes with the signing of 98 MoUs

    0 shares
    Share 0 Tweet 0
  • Op-Ed: Reputational Damage Is Worse Than Losing Money

    0 shares
    Share 0 Tweet 0
  • Three Libyan companies win awards in Athens International Olive Oil Competition ‎

    0 shares
    Share 0 Tweet 0
  • CBL demands imports are conducted through official banking instruments and the elimination of the FX black market

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

A 247,000-bpd oil production increase would achieve US$ 6 billion annually to enhance ability to meet FX demand, maintain strength of LD and achieve economic balance: CBL ‎

Op-Ed: Reputational Damage Is Worse Than Losing Money

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    No Result
    View All Result
    • Login
    • Sign Up
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.