Reply #97: Libya plans shake-up of oil sector

[pinboy3niner]

Thu Sep 8, 2011 5:21pm GMT


• Power to shift from NOC to oil ministry

• NOC will split into three departments

• Libyan companies push for more say in oil future


By Emma Farge


BENGHAZI, Libya Sept 8 (Reuters) - Libya's interim government is drafting a proposal that would shrink the responsibilities of the National Oil Corp (NOC) to make it a purely commercial organisation, a member of the interim government has told Reuters.

The North African country is trying to restore oil production after more than six months of fighting between rebels and forces loyal to Muammar Gaddafi which have caused foreign oil companies to flee and led to infrastructure damage to oilfields and export terminals.

Libya's new leaders are preparing a draft proposal to give more power to the oil ministry and carving up the NOC's responsibilities, according to Mustafa el-Huni, a member of the National Transitional Council (NTC) with responsibility for oil.

"The ministry should make policy. The NOC is a commercial entity, while the ministry is a political (one) and should be involved in international participation and putting policies in place," El-Huni told Reuters late on Wednesday.

This would be a change from the system under Gaddafi where the NOC handled both the daily operations of the oil sector and represented Libya on the world stage at OPEC meetings.

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http://af.reuters.com/article/libyaNews/idAFL5E7K838820110908?sp=true