Libyan Oil Minister Abdul Bari Laroussi about building up Libya’s industry, doing business with foreign oil companies and maintaining security at oil facilities.
Armed clashes occurred in Mellita Gas Production Complex, (far western Libya), which disabled gas pumping. How is the situation now?
Thank God, the situation there is reassuring and calm. The production has returned to a normal rate, so has the external export, where the headquarters have been secured from the outside by the army and from the inside by industrial security forces.
Libyan Oil Minister Abdul Bari Laroussi about building up Libya’s industry, doing business with foreign oil companies and maintaining security at oil facilities.
Armed clashes occurred in Mellita Gas Production Complex, (far western Libya), which disabled gas pumping. How is the situation now?
Thank God, the situation there is reassuring and calm. The production has returned to a normal rate, so has the external export, where the headquarters have been secured from the outside by the army and from the inside by industrial security forces.
We have recently signed a new agreement with an Italian company and we export 650 million cubic liters of gas per day to them.
Is the Oil Facility Guard Service able to protect them, especially in the desert areas?
The service is relatively good, but it apparently suffers from some administrative problems. Its elements supposedly fully belong to the army, but because some civilians have joined it, it has become a mix, which is a problem. A military person obeys the orders of his superiors unlike a civilian who is not accustomed to following orders. Besides, the new entrants are revolutionaries who view a lack of obedience as freedom.
Our ministry, in cooperation with the Ministry of Defense (MoD), is planning to establish a strong Facility Guard Service able to protect our oil facilities, so as to be affiliated with us in terms of finance and with the MoD for administration and armament.
Press agencies spotted radiation sites in the separator systems at Nafoura Oil Field, which have been not isolated nor have the operators been protected from them and one of them is still operating. What are the measures taken by the ministry to deal with such issues?
There are Naturally Occurring Radioactive Materials (NORM) in the oil industry. The ministry has been informed about that incident and we have conducted studies to reduce these problems.
Further, residents of Ra’s Lanuf complain that some companies operating there throw away and bury radioactive waste in the region. We have conducted studies and made sure that this is not true. However, we are interested in the environment and this is a priority for our action plans for this year.
We are also trying to contact specialized foreign companies to survey work areas and provide protection to the population. On the other hand, we have submitted proposals to the government so that the ministry would establish integrated, model cities 20-25 kilometers that are at least far from pollution areas so that oil company workers in particular as well as other Libyans can move there.
How does the ministry deal with increased demands of Eastern Libya’s inhabitants to return the National Oil Corporation (NOC) to Benghazi?
True, NOC was established under the monarchy in Benghazi, but its activity and philosophy then was different from now. It was a small body with coordinating functions, but when it was moved to Tripoli, it was given great powers which were withdrawn from oil companies.
The ministry currently intends to return powers to the companies and reduce NOC’s functions to follow-up. Transferring NOC will not serve the region, and the citizens do not want more congestion; they need improved services in the city.
Since there are problems in manufacturing, we in the ministry have decided to create a Benghazi-based new institution, named the National Corporation for Petroleum Refining and Petrochemical Manufacturing, which will have great powers and oversee manufacturing operations all over Libya.
Libya only produces 30% of the domestic market needs and imports the remaining 70%, which is a disaster in an oil country like Libya.
The manufacturing corporation to be established will focus on oil refineries, such as Zawyia and Tobruk refineries; establish new refineries, including one in Sabha; and supervise the private sector and foreign investment. We expect that the value of investments in the petrochemical industry will amount to US$50 billion over five years, and that the number of workers at the corporation, which will oversee several companies will reach 1,500 technicians, engineers and security and safety personnel.
Has a date been set for its establishment?
The Prime Ministry has already issued a decision in this regard, and the foundation stone will be laid during the coming period.
Is it true that NOC will stop announcing its sales figures?
No. Sales are announced in accordance with the concluded contracts without any attempt to hide anything.
After the British authorities released Abdelbaset al-Megrahi, who was convicted in the Lockerbie case, the US Congress accused BP of concluding a deal with Gaddafi’s regime against oil contracts. Has the ministry investigated these charges?
I know nothing about this matter, but the ministry deals with BP because it has contracts with them and it is a giant company specialized in excavation.
There might have even been agreements between BP and Gaddafi’s regime; however, some companies spent billions but get nothing. NOC awards projects that need huge funds to foreign companies, and in case oil or gas is discovered, an agreement on shares is signed and the foreign investor assumes production as a compensation for expenses.
As for al-Megrahi’s release, unknown things, if any, have not been investigated yet. We are now reviewing all previous contracts, but we have not opened BP’s file yet.
What is the scope of your recent explorations?
The explorations are promising and grow in size every time, despite the big challenges and unserious former regime in terms of contracts. The oil sector needs very large expenditures and development. We should think of the future generations, build on solid foundations and create a good oil infrastructure and alternatives.
Will you have any new oil contracts?
We are now assessing the previous contracts and when we finish, we will present new opportunities. The situation is generally reassuring and foreign companies have begun to return to Libya.
Are training opportunities available for the sector workers?
We have training opportunities at home and abroad. There are 450 training opportunities abroad distributed among different oil companies, through contracting with the Ministry of Higher Training. A trainee however should have spent five years in the oil sector and have good knowledge of English.
As for job seekers, we receive thousands of young people in cooperation with the Ministry of Labor. We now have 2,000 job opportunities and have received about 12,000 applications.
