NOC suspends gas supplies to Libyan Norwegian Fertilizer Co. pending debt payment

By Sami Zaptia.

London 25 January 2019:

Libya’s National Oil Corporation (NOC) has suspended the supply of natural gas to the Libyan Norwegian Fertiliser Company (LifeCo) pending settlement of its unpaid debts.

The NOC said that it has attempted to resolve the issue through various consultations aimed at rooting out “corruption” and ensuring operational continuity at LifeCo plants.

Libya’s National Oil Corporation regains full control of Ras Lanuf Refinery from Emirati LERCO JV’s Trasta Company

Mellitah Oil & Gas Bouri field US$ 1.565 billion gas exploitation project completes phase – to start utilising 125 million cf / day of natural gas by September

It said that it has held a series of meetings with the management of the Norwegian foreign partner, Yara and LifeCo’s board of directors to discuss arrangements that ensure LifeCo’s partner assumes its financial responsibility towards collective debts.

These amount to: 210 million Libyan dinars and 31 million euros owed to Sirte Oil Co, and over 80 million USD owed to the NOC.

The NOC says that talks to negotiate a solution have not been successful as a result of “Yara’s refusal to assume repayment responsibility, expecting the NOC to solely finance LifeCo’s operations, while continuing to market its products internationally – resulting in an unequal relationship; profitable to Yara, but loss-making for NOC”.

The NOC, however, assured LifeCo employees that job protection remains its absolute priority, while it retains its right to hold financial defaulters, from any party, accountable.

The NOC said that it is currently exploring various solutions to the problem to ensure the continuity of the company and the resumption of business as soon as possible – thereby securing the future of staff, and transforming it into a profitable and transparent company serving the national economy.

It will be recalled that that LifeCo was formed in 2009 during the Qaddafi regime as a joint venture, with Yara holding 50% of the shares and both NOC and the Libyan Investment Authority each taking a 25% stake.

Yara has already been fined 48 million USD for bribery of government officials and seen a number of its staff, including Yara’s top legal advisor, found guilty of corruption and sentenced to imprisonment by a Norwegian court.

Investigations into these incidents of illegality, conducted by the Norwegian and Swiss authorities, are being examined in collaboration with the office of the Libyan public prosecutor.

https://www.libyaherald.com/2014/05/02/lifecos-resumed-fertiliser-output-boosts-norwegian-partner-yara/

https://www.libyaherald.com/2012/03/24/lifecos-norwegian-partner-yara-international-on-corruption-charge/

https://www.libyaherald.com/2016/04/25/audit-bureau-referred-102-cases-involving-483-people-for-infringements-in-2015/

NOC suspends gas supplies to Libyan Norwegian Fertilizer Co. pending debt payment

RELATED POSTS

Libya’s National Oil Corporation regains full control of Ras Lanuf Refinery from Emirati LERCO JV’s Trasta Company

Mellitah Oil & Gas Bouri field US$ 1.565 billion gas exploitation project completes phase – to start utilising 125 million cf / day of natural gas by September

Related Posts

CBL renews call for closure of unofficial FX sales outlets – as dinar begins to slide again

GIZ organises workshop on sustainable municipal waste management systems

Tripoli Court convicts former Financial Controller at the Libyan mission in Bangladesh to fours jail for financial fraud

Zawia armed clashes ended – Zawia Refinery’s Aviation Kerosene Tank 501 ruptured

Health Ministry signs Strategic Cooperation Agreement 2026-2027 with WHO – announces results of the 100-Day Initiative

Zawia clashes lead to Zawia Refinery shutdown and evacuation of Zawia Port

UK signs MoU with Libyan Airports Authority to supply explosives detectors

HSC head Mishri leaves Muslim Brotherhood

Top Stories

Arabian Gulf Oil Company Chairman holds virtual meeting with BP

Zawia clashes lead to Zawia Refinery shutdown and evacuation of Zawia Port

Aldabaiba visits Rome today: Debts to Italy and Libyan bureaucracy are holding back increased trade

Mellitah Oil & Gas Bouri field US$ 1.565 billion gas exploitation project completes phase – to start utilising 125 million cf / day of natural gas by September

Zawia armed clashes ended – Zawia Refinery’s Aviation Kerosene Tank 501 ruptured

Recent News

General Union of Chambers discusses with German Embassy arrangements for the Libyan-German Economic Forum of 19-20 May

Ministry of Economy issues decrees directing importers to use legal distribution channels to control prices in the market

Sitemap

Newsletters

Welcome Back!

Create New Account!

Retrieve your password