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Libya's State Oil Company wants to increase output and transparency, says new Chairman

Massoud Suleman, the new acting chairman of Libya's National Oil Corporation, said that it would focus on increasing its output and transparency as Africa's largest oil producer tries to recover from years' worth of instability.

Since 2011, violent factionalism, and disputes over labour have disrupted the oil and gas production of the state-owned firm that oversees it.

Last year, production plummeted multiple times due to rivalry between groups. This included a dispute over the leadership of Libya's central bank that controls oil revenues.

Suleman responded to questions via email by saying, "The National Oil Corporation's strategic plan for increasing production is something we will continue to implement. We can make adjustments whenever needed."

According to NOC, the country will produce about 1.4 millions barrels of crude oil per day by the end of 2024. The longer-term goal of the OPEC nation is 2,000,000 bpd.

Khalifa Abdelsadek told reporters earlier this month that the country needed $3 to $4 billion in order to achieve a production of 1.6 millions bpd.

Suleman said that he also would concentrate on increasing the transparency of NOC, which could include streamlining certain operations and possibly closing some offices.

According to its website NOC owns 15 subsidiaries in full, as well as stakes in joint-ventures and other companies.

Suleman stated, "I will concentrate on ensuring transparency within the National Oil Corporation, so that any investors, whether they are the Libyan government or our foreign partners can be confident that the money invested in the NOC will use it in the best way possible."

Foreign investors are wary about investing in Libya. The country has been divided for years between rival factions of the east and west, backed by Turkey or Russia.

"I'm still trying to get a full picture of the work done by some companies like the Mediterranean Oil Services Company", Suleman said, referring specifically to NOC, which is responsible for procuring equipment and services related oilfield operations.

"I'll probably move cautiously to evaluate some branches and close some of them... particularly some of the recently established branches."

Mediterranean Oil Services is headquartered in Dusseldorf in Germany and, since 2020, in Dubai. Libyan media reported last year that the company opened a branch in Istanbul.

Suleman stated that closing some offices would "simplify the corporate structure and make it easier to manage the company in the future."

CRUDE FOR FUEL SWAPS

He said that he was in touch with the Libyan attorney general regarding a "request for an end to the crude swap program". NOC uses crude-for fuel swaps as a funding alternative.

He also said that he would work with the central banks and the Government of National Unity in Tripoli to determine "the appropriate mechanism to provide sufficient budget to ensure the complete supply of refined products to the country".

He is the first person to comment on possible office closings, and the first to comment on the decision of the Attorney General to stop NOC from using crude-for fuel swaps.

Suleman succeeded Farhat Bengdara in the position of chairman at NOC by mid-January. Bengdara resigned from his position as chairman of NOC in mid-January. He was appointed by NOC in July 2022.

Libya, despite being a member of the Organization of the Petroleum Exporting Countries(OPEC), is exempted from the output limits agreed upon by its members and their allies in the so-called OPEC+ producer group. This includes Russia.

Donald Trump, the president of the United States, has asked that crude oil prices be reduced.

(source: Reuters)