On Wednesday, Libya’s Minister of Oil and Gas, Mohamed Aoun publicly accused major oil companies of exploiting Libya’s political strife, to renegotiate contracts for their advantage, failing to fulfil their prior commitments.
In an interview with the ‘Energy’ platform, he shed light on the manipulative tactics allegedly employed by these companies in the Libyan oil sector.
Aoun specifically criticised TotalEnergies and ConocoPhillips. He accused them of “seeking to amend their agreements with the Libyan state, under the guise of developing new oil discoveries, commitments that have yet to be realised.” According to Aoun, ConocoPhillips has been delaying development since 2006. TotalEnergies, despite obtaining a significant oil stake in 2019, and promising to develop the Waha Oil Company’s fields, has not made any progress.
The minister’s critique extends beyond individual companies to a broader pattern of exploitation, where international firms are seen as taking advantage of Libya’s weakened political state to maximise their benefits. He highlighted that before 2011, Libyan institutions had successfully negotiated contracts with various Italian and European companies, but the scenario drastically changed after the Libyan Civil War.
Aoun also contested the revised terms of the contract with Italian firm Eni, regarding the Al-Hamada field, refuting the company’s claims of the field’s economic non-viability. He emphasised that Libya “requires at least five years to increase its oil production to two million barrels daily.”
The minister’s remarks point to a deeper issue of foreign entities increasing their oil extraction share, without honouring their development commitments. According to Aoun, this trend dates back over three decades, with sites discovered in the 1970’s remaining undeveloped. He suggested that these sites should be returned to the National Oil Corporation (NOC) if no development occurs.
These allegations underline the complex challenges facing Libya’s oil sector, noting the need for transparent and equitable partnerships between the Libyan state, and international oil companies.