The chairman of Libya’s National Oil Corporation, Mustafa Sanalla, announced plans to allow foreign oil companies to invest again in Libyan oil production:

“We intend in the coming months to lift our self-imposed moratorium since 2011 on foreign investment in new projects to achieve the best national interest for the Libyan oil sector and for Libya as a state.”

In a keynote address at Chatham House’s Middle East and North African Energy conference, Mr. Sanalla said NOC-driven projects to expand oil production could create a virtuous circle of domestic economic stimulus and security, while raising Libyan oil production to a forecast 1.25 million bpd by the end of 2017 and 1.6 mln bpd by 2022.

Sanalla said after three years of blockades by the Petroleum Facilities Guards, all major oil export routes were now open. Investment in oil production capacity was needed to build on the opportunity created after the central Petroleum Facilities Guards under Ibrahim Jadhran were removed from the ports of the Oil Crescent by the Libyan National Army in September, and flows from the Shahara field were unblocked.

“The LNA has its hands on the taps. And the Government of National Accord (GNA) has [UN Security Council resolutions] 2259 and 2278. Each side has one key to the treasure room, but both keys are needed to open the door. And for the moment the oil is flowing. This can be an important foundation of stability in Libya if we build on it.”

Saying the oil sector had suffered from chronic under-investment, Sanalla continued:

“We cannot rely on the international community to save us. We don't know when the transitional period will end. We cannot stand back and do nothing while the state disintegrates. The integrity of NOC is the best guarantee we have that Libya will be preserved as a unitary state.”

About National Oil Corporation

The National Oil Corporation (NOC) was established on 12 November 1970 , under Law No: 24/1970, replacing the general Libyan Petroleum Corporation which established under Law No. 13 of 1968 to assume the responsibility of the oil sector operations . It was later reorganized under decision No :10/1979 by the General Secretariat of the General People's Congress, to undertake the realization of the objectives of the development plan in the areas of petroleum , supporting the national economy through increasing , developing and exploiting the oil reserves and operating and investing in those reserves , to realize optimum returns. In carrying out its activities, NOC may enter into participation agreements with other companies and corporations carrying out similar activities.