Libyan Oil Ministry confirmed Sunday that signing agreement between the National Oil Corporation (NOC) and Italian Eni violates legal legislation stipulated in the Oil Law and the law establishing the Corporation.
The Ministry added that this procedure requires prior approval from the Oil Ministry to raise the share of the foreign partner, which in turn refers it to the Council of Ministers for decision, and this did not happen.
It explained that the Oil Ministry is committed to following the legal paths in all its transactions, as it is the legally responsible body before the legislative and audit authorities.
The Ministry requested NOC Chairman to follow the legal mechanisms in this regard and to refer the technical and economic justifications on the basis of which this amendment was made to the Oil Ministry.
The Ministry considered that the Corporation’s sole decision to amend the agreements opens the way for other partners that it is possible to make any amendment to what was previously agreed upon without going through the procedures and legislation stipulated in the Libyan law.
NOC signed Saturday an amendment to the existing agreement concluded with Eni in 2008, changing the agreed shares of production partners and increasing the share of the foreign partner to 37% instead of 30%.