• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 7 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 hours Governments that wasted massive windfalls
  • 1 day Let’s take a Historical walk around the Rig
  • 5 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 9 hours Trump has changed into a World Leader
  • 3 days US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 20 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 3 days Might be Time for NG Producers to Find New Career
  • 27 mins 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 hours Trump capitulated
The Oil Industry’s Radioactive Secret

The Oil Industry’s Radioactive Secret

An investigative journalist has written…

Damir Kaletovic

Damir Kaletovic

Damir Kaletovic is an award-winning investigative journalist, documentary filmmaker and expert on Southeastern Europe whose work appears on behalf of Oilprice.com and several other news…

More Info

Libya Arrests Oil Executives For Alleged Offshore Fraud

Handcuffs

Just as Libya loads its first tanker from a new floating storage platform in the offshore Bouri oilfield, authorities have detained four senior oil executives over fraud related to the vessel.

Authorities on Monday arrested four senior executives from Mellitah Oil and Gas, which operates the Bouri field in a joint venture between the National Oil Corporation and Italy’s Eni, according to Libya media reports.

The authorities allege that the four abused their power and wasted public money in the acquisition of the 120,000-ton Gaza storage tanker, which is part of the US$425-million floating storage and offloading vessel (FSO).

More specifically, the authorities allege that the contract price of the Gaza was inflated, and claim that an 11-month delay in the delivery of the vessel was not reimbursed in line with a penalty clause for five percent of the contract value.

The names of those arrested have not been released officially.

On Monday, the new FSO loaded its first tanker from the Gaza platform, which was constructed in South Korea. The platform arrived in May 2016 and began pumping crude in January 2017. The new platform replaces an ageing Italian platform.

The platform’s storage tanks have a capacity to hold 1.5 million barrels.

Related: Artificial Intelligence To Reveal The Biggest Secret In Oil

Production began in the Bouri oilfield in 1988. It was discovered in 1976.

The news comes as Italian oil giant Eni is working to increase its activities in Libya, despite the political chaos, and despite the fact that other supermajors have withdrawn entirely.

In January, Eni launched exploratory drilling for gas offshore.

The political situation in Libya is still such that the continuation of current production levels is uncertain at best. While the country is now producing 715,000 barrels per day, down from its Ghaddafi heydays of 1.6 million bpd, the ongoing power struggle and rapidly shifting alliances render stability elusive, and allows smuggling to thrive.

Last week, forces of the Misrata militia announced the creation of yet another ‘guard’—the Libyan National Guard (LNG)—ostensibly to “protect” institutions. Yet they have already engaged in clashes with the flailing UN-backed Government of National Accord (GNA). This has pushed GNA closer to its main rival, General Haftar of the Libyan National Army (LNA).

Then, on Monday, unnamed sources told Libyan media that the head of the GNA’s Presidential Council was planning in the coming days to propose the formation of a ‘mini-government’ that would have a unified military council headed by General Haftar.

If successful, this new alliance could help unify Libya, at least temporarily.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play