Libyan Oil and Gas Minister, Mohamed Aoun announced that Libya has successfully reclaimed approximately $2.4 billion dollars in state dues from foreign oil companies. These dues were previously held by the former Chairman of the National Oil Corporation (NOC), Mustafa Sanalla.
In an interview with “Attaqa” magazine, Aoun highlighted Libya’s strategic direction towards ceasing the burning of associated gas by 2025, and preparing to enter the hydrogen market after studying the feasibility of transporting and exporting it to Europe.
Aoun also elaborated on the increased demand for liquefied natural gas (LNG). He noted a memorandum of understanding, which has evolved into agreements with Italy, to establish an LNG plant in Libya, though there has been no progress yet.
The Minister attributed the halt in negotiations about the plant to Sanalla. He accused him of “political entanglements and reliance on foreign countries, which led to a neglect of important projects and agreements, especially those involving large gas quantities from both land and maritime fields.”
Aoun pointed out that “companies claimed insufficient security in Libya as a concern.” However, he noted that maritime operations continued far from any military activity. He criticized the British oil company, BP for not investing in the sea, and conducting their operations from a naval base in Tunisia or Malta.
Aoun denied any agreement signed by the Ministry with the South Korean company, STX for establishing an oil pipeline through the Egyptian port of Gargoub. He mentioned that the Egyptian Ministry of Petroleum was not aware of this agreement, indicating it was a unilateral decision by the Ministry of Transport, without consulting the Oil Ministry.
Additionally, he disclosed objections from the Egyptian Petroleum Minister regarding this procedure, as such agreements are supposed to be signed after discussions with Libyan oil institutions. However, he noted that some Egyptian companies, including Petrojet, continue their operations in Libya.