The National Oil Corporation of Libya is a state-owned company based in Tripoli, established in 1970. It is the largest source of national income in the country, and is responsible for the production and export of oil and natural gas, the operation of their facilities, and the management of their fields, in cooperation and partnership with a number of local and international companies.
Origin and foundation
The National Oil Corporation of Libya was established by Law No. 24 of 1970 to manage the country’s energy resources and oil industry, replacing the Libyan General Petroleum Corporation, which was established in 1968.
The National Oil Corporation was reorganized in 1979 by Resolution No. 10 of the General Secretariat of the General People’s Congress (dissolved in 2011), in order to achieve the objectives of the transformation plan in the oil fields, and to support the national economy in partnership with other bodies, institutions and entities that carry out similar work.
National Oil Corporation Management
The National Oil Corporation is managed by a Chairman of the Board of Directors, who is appointed by the Libyan government, along with the rest of the Board of Directors, which is made up of senior executives.
The Board of Directors is responsible for the day-to-day operations of the Corporation, oversees the various departments and functions within it, and provides guidance and makes collective decisions regarding the Corporation’s companies, policies and investments.
National Oil Corporation Companies
The National Oil Corporation undertakes exploration and production operations through its wholly owned companies or through partnerships with other parties, through contracting or investment.
The Corporation owns integrated exploration, development and production companies, in addition to companies in the field of internal and external marketing. It cooperates with international companies, and the Corporation manages refineries, oil fields and ports, including:
- Tobruk port.
- Zueitina port.
- Brega port.
- Ras Lanuf port.
- Sidra port.
- Port of Zawiya.
- Port of Mellitah.
It operates ammonia, urea and methanol production plants at the Brega petrochemical complex, in addition to facilities for liquefying natural gas and producing ethylene and polyethylene at the Ras Lanuf complex.
Companies owned by the National Oil Corporation
- Arabian Gulf Oil Company.
- Sirte Oil and Gas Production and Manufacturing Company.
- Ras Lanuf Oil and Gas Manufacturing Company.
- Zawiya Oil Refining Company.
- Brega Oil Marketing Company.
- Al-Jouf Oil Technology Company.
- Libya Technology Engineering Company.
- North Africa Geophysical Exploration Company.
- National Oil Well Drilling and Maintenance Company.
- National Oil Construction Company.
- Marzouq Oil Services Company Limited.
- Libyan Fertilizer Company.
- Zallaf Oil and Gas Exploration and Production Company.
- National Oil Fields and Ports Supply Company.
- Oil Aviation Company.
Partner institutions with the National Oil Corporation
- Eni North Africa B.V.
- Sonatrach.
- Waha Oil Company, a partnership between the National Oil Corporation and the French TotalEnergies and American ConocoPhillips coalition.
- Mellitah Oil & Gas B.V.
- Akakus Oil Operations Company, a partnership between the National Oil Corporation and the Spanish company Repsol.
- Harouge Oil Operations Company, a partnership between the National Oil Corporation and Suncor Energy Oil-North Africa Limited.
- Nafusa Oil Operations Company B.V.
- Sarir Oil Operations Company, a partnership between the National Oil Corporation and the German company Wintershall DEA.
- Zueitina Oil Company, a partnership between the National Oil Corporation and OMV Austria.
- Mabrouk Oil Operations Company, a partnership between the National Oil Corporation and the French company Total.
- The Libyan-Emirati Oil Refining Company, a partnership between the National Oil Corporation and the Emirati company, TRASTA.
Centers and institutes affiliated to the National Oil Corporation
- The Oil Research Center, which is the scientific arm of the institution, specializes in scientific research supporting the oil industries.
- The qualitative center for training in oil industries.
- Oil Clinic to provide medical services to sector employees and their families.
- The Oil Institute for Training and Qualification specializes in qualifying human competencies to meet the needs of the oil industry for qualified manpower and provide training courses.
- Sabha Institute of Petroleum Technology, one of the educational training centers.
- The Oil Institute for Rehabilitation and Training in Ajdabiya, which aims to train holders of the preparatory certificate to join the labor market in the Libyan oil sector.
Stations
Following the overthrow of the late Colonel Muammar Gaddafi’s regime in 2011, the Ministry of Oil and Gas ceased to function, resulting in the National Oil Corporation being assigned some sovereign duties.
The Ministry was reactivated after the February 17 Revolution with its usual tasks, while the National Oil Corporation continued to perform its role in managing oil operations technically and technologically under the supervision of the Ministry.
In 2012, the Council of Ministers issued Resolution (32) approving the organizational structure of the Ministry of Oil and Gas, to separate the powers of the Ministry and the National Oil Corporation. Pursuant to this resolution, the Ministry became responsible for the sovereign, regulatory and supervisory aspects of the oil sector and its affiliated bodies, while the Corporation assumed the management of production, refining and export in cooperation with its affiliated companies.
Due to the political division and internal unrest that swept the country, the role of the ministry was reduced and it was frequently absent from the political scene, which led to the National Oil Corporation being once again assigned some sovereign tasks.
In March 2017, the Presidential Council of the Government of National Accord abolished the Ministry of Oil and Gas, and shared its powers with the National Oil Corporation.
By the end of 2020, a new political agreement was reached between the Libyan parties, which resulted in the reactivation of the Ministry of Oil and Gas in the Government of National Unity.
The ongoing conflict and political divisions between the parties to the conflict in Libya have caused repeated closures of oil fields and ports, negatively affecting the stability of oil production and increasing the complexity of managing the sector. A confrontation between the parties to the conflict caused the closure of most of the country’s oil fields in August 2024.
A struggle for control of the Central Bank of Libya has halted oil production in Libya, after western factions (the Government of National Unity) tried to oust the bank’s governor, Al-Siddiq Al-Kabir, and replace him with a rival council, prompting eastern factions (the government of Osama Hamad) to halt oil production entirely.
Libya’s National Oil Corporation said at the end of last August that the closure of the oil fields at that time caused the loss of approximately 63% of the country’s total oil production, days after the government controlling eastern Libya and assigned by parliament declared a state of “force majeure” on the entire oil sector and halted production and exports.
The losses from the oil and gas shutdown in Libya amounted to more than $120 million in 3 days, according to a statement by the National Oil Corporation on August 29, 2024, which showed a decline in normal oil production rates from 1,279,386 barrels on the 26th (the day the shutdown began) to 591,024 barrels on the 28th.
Libya relies on oil export revenues for 90%, and one of its declared goals is to produce two million barrels per day. It has the largest oil reserves in Africa, the fifth largest natural gas reserves in Africa, and the ninth largest reserves in the world.
