Page 14 - AfrOil Week 24

AfrOil PERFORMANCE AfrOil

Libya’s NOC loses hold on El-Feel site

LIBYA LIBYA’S National Oil Corp. (NOC) has once that conditions had deteriorated further at Sha-
again lost control of El-Feel, one of the largest rara. It said that armed groups under the com-
oilfields in the country. In a press statement mand of Ahmad Ibrahim bin Nayel and Masoud
dated June 10, the company confirmed reports Al Jadi had arrived at the field and had damaged
to that effect. field infrastructure, violated health and safety
NOC had resumed production at El-Feel rules designed to protect workers from the
on June 7, thereby ending the stoppage that coronavirus (COVID-19) pandemic and had
began in January, when Khalifa Haftar’s Libyan also diverted supplies of food and other essen-
National Army (LNA) mounted a blockade that tial goods.
shut down much of the country’s petroleum NOC and its Akakus subsidiary, which oper-
industry and dragged crude output levels down ates Sharara, have evacuated their workers from
by more than 800,000 barrels per day (bpd). It the field. They have also asserted that “the con-
did so just one day after restarting development tinuing presence of these armed groups presents
work at Sharara, another large field that had a significant danger and threatens to cause sus-
been affected by the blockade. tained damage to the infrastructure of the field,
On June 9, though, NOC reported that armed jeopardising investments exceeding $4bn of
troops under the command of Mohamed Khal- public money in the field’s assets and facilities.”
ifa, the head of a group known as the Petroleum Together, Sharara and El-Feel are capable
Facilities Guard (PFG), had stormed Sharara of producing as much as 390,000 bpd of crude
and had forced civilian workers at the site to halt oil. Bringing the fields back online would help
production. Then on June 10, the company said NOC compensate for the fall in output that has
that Yousif Hassan al-Tabawi, the commander occurred since late January. ™
of the Khalid bin al-Walid Battalion, had forced
a shutdown at El-Feel.
NOC has blamed the PFG for its loss of con-
trol over the field. “National Oil Corp. (NOC)
confirms that this is a serious criminal act
against the Libyan people and its interests. It
demonstrates again the failure of the Petroleum
Facilities Guard (PFG) to carry out their legal
duties of protecting the oil sector’s facilities and
workers. The PFG has become like a militia that
carries out orders of illegitimate leaders in order
to serve foreign interests,” it said in a statement.
Two days later, on June 12, NOC reported El-Feel is one of Libya’s largest oilfields (Photo: AddressLibya.co)

Audit shows Sasol may owe

back taxes in Mozambique

GHANA ACCORDING to a report from the independ- not actually eligible for recovery, STV reported.
ent television channel STV, Sasol declared that Another $49.3mn of the costs reported for FY
its recoverable costs for operations in Inham- 2018 were similarly ineligible, it said.
bane Province had reached of $148.7mn Assuming that these numbers are correct,
and $114.4mn in fiscal years 2017 and 2018 Sasol appears to have overstated its recovera-
respectively. ble costs by around $99.8mn during the years
But the preliminary results of the 2019 Gen- covered by the audit. If so, the cost inflation
eral State Account (CGE), an audit ordered by will affect the company’s tax obligations, since
the Mozambican Ministry of Economy and Mozambique deducts recoverable costs from
Finance, indicate that those numbers were tax payments due, STV explained.
inflated, the channel said. As of press time, neither Sasol nor the
The 2019 CGE audit shows that $50.5mn Mozambican government had commented on
of the costs reported by Sasol in FY 2017 were the television channel’s report.

P14 www. NEWSBASE .com Week 24 17•June•2020