Libya is insisting that only authorised companies can buy its crude oil, which must be purchased on letter of credit (L/C) terms according to a statement issued by the National Oil Corporation (NOC).

It is concerned about attempts to illegally sell Libyan oil cheaply on the black market.

L/C terms

According to the NOC statement, the corporation is aware of illegal offers to sell oil at a huge discount to the official selling price. If the sales were completed, it would cost Libya hundreds of millions of US dollars in lost revenue.

The statement stipulates that all crude oil exports must be paid for on L/C terms and at the official selling price without any discount.

Stern warning

The statement provided no details of who is offering the contracts but warned shipping companies and the crude oil market that the contracts were illegal.

"Entering into them may lead to serious legal consequences and financial losses," it cautioned. "NOC does not accept responsibly or liability whatsoever for any loss or damage incurred as the result of entering into contracts with unauthorised individuals," the statement added.

Authorised companies

The corporation has contracts with 16 international companies for the sale of all Libyan crude to be produced this year and only they are allowed to buy Libyan crude oil and charter shipping tankers from Libyan ports during 2017.

The companies are ENI, Total, OMV, Repsol, Rosneft, LukOil, Cepsa, Saras, API, Glencore, Socar, Unipec, Vitol, Gunvor, Petraco, and BB Energy.

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