Libya’s Oil minister, Mohamed Aoun has criticized international oil companies operating in the country, alleging that they are “capitalizing on the political turmoil to delay development projects.”
In an interview with S&P Platts, Aoun stated that “most companies have not fulfilled their commitments to specific projects, taking advantage of the unstable political situation.”
Earlier this year, major oil companies, including BP and Italy’s Eni, lifted the force majeure on their Libyan operations, indicating a return to the country, as communicated to Libya’s National Oil Corporation (NOC).
However, Aoun is now accusing these companies of exploiting Libya’s security challenges to renegotiate contractual terms, showing little urgency in resuming production.
Libya had previously called on major oil companies to return to their fields, with plans to launch its first oil and gas tender in 17 years.
Although Libya currently produces around 1.24 million bpd, Aoun’s accusations suggest a slowdown in the development plans.
The upcoming 2024 tender aims to propel Libya closer to its goal of reaching 2 million barrels per day by 2026, with a maximum production capacity projected at 1.8 million bpd by 2024.
Recently, Aoun commented on the unlikely prospect of an OPEC-led oil embargo, in response to the ongoing Israel-Gaza war. He highlighted that the Organization, with its diverse membership including non-Arab nations, is unlikely to unify behind such an action, reminiscent of the 1973 Arab oil embargo that triggered a global energy crisis.
Aoun emphasized that the 13-member group includes countries that “might not share the same political stance as Arab oil producers, who are critical of Israel’s intensified operations in Gaza. This diversity in political views within OPEC makes a unanimous decision for an embargo improbable.”
While several Arab members of OPEC have voiced their criticism of Israel’s actions in Gaza, and the resulting high Palestinian civilian casualties, Iran has been the most vocal within OPEC advocating for a Muslim oil embargo. However, this proposal has not found support among Gulf producers. This call for action comes at a crucial time as OPEC+ ministers are scheduled to meet, to discuss future oil production levels.