18898
Libya’s Official Gov’t Fails to Sell Oil Directly
Energy

Libya’s Official Gov’t Fails to Sell Oil Directly

Libya's official government, based in the east since fleeing the capital, has so far failed to sell oil by itself, despite setting up a Dubai bank account and new central bank unit, industry and banking sources say.
The internationally recognized government said in March it wanted oil buyers to pay through a new state oil firm with an account in Dubai and stop dealing with the established entity in Tripoli controlled by a rival government, Reuters reported.
Last week the government of premier Abdullah al-Thinni, which has been struggling to make an impact since losing Tripoli last year to a rival faction, launched another attempt to control public finances by setting up a new central bank headquarters in the eastern city of Bayda. Thinni's government controls more than half of Libya's oil output of 460,000 barrels per day. But it has failed to attract buyers as foreign firms worry about who exactly owns the oil being marketed by the eastern government, even though it is recognized, industry insiders say.
A central bank source confirmed that oil buyers were continuing to pay through the state oil firm NOC and central bank in Tripoli, keeping in place a decade-old payment system.
Husni Bey, who heads one of Libya's biggest private firms, said Thinni had pushed the eastern central bank governor, Ali Salem Hibri, to set up the Bayda bank to show he wants to run the whole country, but little work was done at the bank.
"Hibri has been under extreme pressure to set up an alternative central bank in Bayda," he said.
A central bank source in Tripoli said eastern bank officials had set up in Bayda computers moved out of the bank's branch in Benghazi, an eastern city hit by fighting. The Bayda officials had tried to get the computers running and tap the central bank's foreign accounts but partner banks in Europe had refused to deal with them as they only process payment orders from Tripoli, the source said.
Oil revenues are mostly held in accounts abroad due to poor security in Libya and its underdeveloped banking system. The Tripoli bank transfers only money home needed to cover expenditures such as food import financing.

 

Short URL : http://goo.gl/LLNE1g

You can also read ...

China Shifts to Iranian Tankers to Keep Oil Flowing
Chinese buyers of Iranian oil are starting to shift their...
Large Oil Vessel Anchors in Chabahar
A large crude carrier with a capacity of 50 million liters of...
Replacement of France's Total Underway
Oil Minister Bijan Namdar Zanganeh said on Monday France’s...
Greek Island to Run on Wind and Solar Power
When the blades of its 800-kilowatt wind turbine start turning...
Vopak: More Volatility Expected in Oil Prices
A shipping revolution and a US plan to impose targeted crude...
Advantages, Challenges of Renewables Outlined
Saving water, creating sustainable jobs, curbing air pollution...
Plans to Expand Gas Pipelines by 1,000 Km 
Iranian Gas Engineering and Development Company plans to lay...
SP Oil Layer Loads 19th Cargo
The 19th batch of crude oil from South Pars Oil Layer in the...

Trending

Googleplus