Pending the outcome of the Skhirat dialogue on the formation of a new national unity government, polemics over the National Oil Corporation responsible for boosting the revenue wheel in Libya continues unabated.

Pending the outcome of the Skhirat dialogue on the formation of a new national unity government, polemics over the National Oil Corporation responsible for boosting the revenue wheel in Libya continues unabated.

Libya has two oil corporations: one in the east controlled by the interim government and the other in the west controlled by the national unity government. Although the newly-born oil corporation in Al-Bayda (north east) belongs to the internationally recognized government, most of the local and foreign oil transactions are still being managed by the old Tripoli-based Corporation.

Naji Maghrabi heads the National Oil Corporation (NOC) affiliated with the interim government. Maghrabi took charge of this post a week ago and is still exerting efforts to reverse the prevailing status quo.

Naji Maghrabi, it is common knowledge that most of the NOC departments in Libya are still dealing with the NOC affiliated with the national unity government in Tripoli. As a new Al-Bayda-based NOC head, how do you deal with that situation?

You should not forget that most of the oil fields and ports in Libya are under the control of the House of Representatives and the internationally recognized Libyan interim government. Besides, it is not true that most of the Libyan oil companies are dealing with the illegitimate Tripoli Oil Corporation. We may say there are commercial contracts drawn with NOC in Tripoli during the legitimate periods of the National Congress and the relevant interim government and that some of these contracts are still effective.

In addition, previously the oil revenues went to the Central Bank of Libya which is accredited by the International Monetary Fund (IMF), but soon all that will change.

Where will these lead and when will it will take place?

We, as a legitimate corporation, seek to set the record straight. Following a lengthy meeting with the head of the interim government, we agreed to make a public announcement early in September from the UAE. That announcement will further clarify the situation. A message will be circulated to the international community stating that a future with Libyan oil will be carried out by the legitimate oil corporation and that any other agreement will be considered illegitimate and consequently unrecognized.

How will you ensure that foreign companies will comply with this decision?

This is an expected question. The foreign companies benefiting from the Libyan oil do not look for difficulties or obstacles, especially if they learn that we may take legal action against them, which we can easily win. They will, therefore, choose to deal with the legitimately recognized corporation.

Is it not possible that some companies will continue to deal with the Tripoli-based NOC? How would you react if this were to happen?

In that case, anything can happen. Things may come to the point of preventing oil exports from the ports controlled by the House of Representatives, the revenues of which go to the Tripoli-based oil corporation.

However, we do not want to prejudge things. A number of measures will be discussed with the interim government if such an eventuality develops.

Concerning  depositing the oil revenues with WMF-accredited Tripoli bank account. Is not that tantamount to returning to square one?

No. We are a state and we do not lack good governance.

You may be aware that the IMF has recently accredited Ali Hibri as governor of the Tripoli-based Libyan Central Bank, which is directly affiliated with the interim government. We are now before two options: either a new account is open to which the oil revenues are deposited or the ‘SWIFT’ code data of the previous account will be changed. It is as simple as that.

What about the ports of Sidra and Ras Lanuf? How long will they remain closed, given their status as the two most important oil ports in Libya?

The force majeure status of these two ports will not be ended until we ensure the return of foreign transactions through legitimate conduits. In general, we are planning to hold a broad-based meeting with the command of an oil installations protection force responsible for securing these ports, to ensure first of all that the security situation there is normal. Action will depend on the outcome of that meeting.

Given that you have only recently taken charge of your new mission, what is your plan in a nutshell?

In a nutshell, my plan will be focused on setting up an advisory panel comprised of Libyan oil companies’ experts. Through this panel, I will carry out my duty as Head of the NOC.