THE CHAIRMAN OF Libyas National Oil Corporation (NOC), Shukri Ghanem, has outlined further proposals within the new oil law drafting process, saying that the reconstitution of the Oil Ministry is likely, as well as a transformation of the NOC into a commercial company, but he has reassured IOCs investing in the country that no further radical changes to their terms should be expected.
p> THE CHAIRMAN OF Libyas National Oil Corporation (NOC), Shukri Ghanem, has outlined further proposals within the new oil law drafting process, saying that the reconstitution of the Oil Ministry is likely, as well as a transformation of the NOC into a commercial company, but he has reassured IOCs investing in the country that no further radical changes to their terms should be expected.
Ghanem will once again attempt to reform the Libyan oil industry and policymaking structure at its core.
The new oil law will "kind of legislate… the new realities" in the industry, Ghanem told Upstream, adding that "it needs to be updated. "There are now joint ventures when the old law talks about concessions". A new law would also reflect the increased importance of gas in the industry. Ghanem did, however, repeatedly clarify that "foreign companies will not be affected" in the Upstream interview, indicating that he realised the spectre of Libya once more embarking on far-reaching oil law reform and institutional reorganisation was likely to unsettle investors and could easily result in companies holding off on new investments wherever possible until they could better assess the shape of a new framework.
