In an unusual step, the National Oil Corporation (NOC) openly complained today that the Central Bank of Libya is withholding its budgets. The fact is a well-known and open secret – but it is unusual for state institutions to openly criticise each other.
The criticism was sneaked into today’s NOC statement focused on the media controversy of the discrepancy in the reported oil revenues up to 13 October. (see article)
It will be recalled that the CBL has reported that it has only received approximately 361 million US dollars from the NOC. The NOC, meanwhile, insists that it has transferred to the Libyan Foreign Bank (an affiliate of the Central Bank of Libya) a total of 1,231,631,354.16 (US$ 1.231 billion) US dollars as of October 13, 2026.
Using the clarification statement on the above discrepancy, the NOC took full advantage to openly complain that:
‘‘the Central Bank has withheld the budgets approved by the government, failing to release them to the Corporation.
This has hindered the implementation of the Corporation’s plans and programmes, including the fulfilment of financial obligations within the oil sector, the maintenance of production stability, and the execution of development and maintenance projects’’.
By ‘‘the fulfilment of financial obligations within the oil sector, the maintenance of production stability, and the execution of development and maintenance projects’’ the NOC is referring to the debts it owes to international oil services companies and the shares of producing partners.
Many have not been paid by the NOC for months – some for nearly a year. The NOC explains this by blaming the CBL for not releasing foreign currency funds. Meanwhile international partners and service providers are assured they will be paid ‘‘soon’’.
This has left the internationals in a dilemma. Most of the internationals are continuing to work – but it is unclear for how long they can continue without flows of payment. The pressure is mounting as many service providers may have to make difficult decisions soon about ceasing work. There are pressures from headquarters for Libya branches to extract payments – but the NOC’s hands are tied by the CBL.
If some international companies do indeed cease operating – this will be reflected negatively in Libya’s oil production and revenues. This is the last thing both parties need – but it may happen. And as we are talking about the world’s leading oil services providers – it will be a great loss to the NOC and Libya.